THE EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS  
PROVISIONS ACT, 1952 
____________ 

ARRANGEMENT OF SECTIONS 
____________ 

CHAPTER I 
PRELIMINARY 

SECTIONS 

1.  Short title, extent and application. 
2.  Definitions. 
2A. Establishment to include all departments and branches. 
3.  Power to apply Act to an establishment which has a common provident fund with another 

establishment. 

4.  Power to add to Schedule I. 
5.  Employees’ Provident Fund Schemes. 
5A. Central Board. 
5AA. Executive Committee. 
5B. State Board. 
5C. Board of Trustees to be body corporate. 
5D. Appointment of officers. 
5DD. Acts and proceedings of the Central Board or its Executive Committee or the State Board not to 

be invalidated on certain grounds. 

5E. Delegation. 
6.  Contributions and matters which may be provided for in Schemes. 
6A. Employees’ Pension Scheme. 
6C. Employees’ Deposit-linked Insurance Scheme. 
6D. Laying of schemes before Parliament. 
7.  Modification of Scheme. 
7A. Determination of moneys due from employers. 
7B. Review of orders passed under section 7A. 
7C. Determination of escaped amount. 
7D. Tribunal. 
7E. [Omitted.]. 
7F. [Omitted.]. 
7G. [Omitted.]. 
7H. [Omitted.]. 
7-I. Appeals to Tribunal. 
7J. Procedure of Tribunals. 
7K. Right of appellant to take assistance of legal practitioner and of Government, etc., to appoint 

presenting officers. 
7L. Orders of Tribunal. 
7M. [Omitted.].  

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SECTIONS 

7N. [Omitted.]. 
7-O. Deposit of amount due, on filing appeal. 
7P. Transfer of certain applications to Tribunals. 
7Q. Interest payable by the employer. 
8.  Mode of recovery of moneys due from employers. 
8A. Recovery of moneys by employers and contractors. 
8B. Issue of certificate to the Recovery Officer. 
8C. Recovery Officer to whom certificate is to be forwarded. 
8D. Validity of certificate and amendment thereof. 
8E. Stay of proceedings under certificate and amendment or withdrawal thereof. 
8F. Other modes of recovery. 
8G. Application of certain provisions of Income-tax Act. 
9.  Fund to be recognised under Act 11 of 1922. 
10.  Protection against attachment. 
11.  Priority of payment of contributions over other debts. 
12.  Employer not to reduce wages, etc. 
13.  Inspectors. 
14.  Penalties. 
14A. Offences by companies. 
14AA. Enhanced punishment in certain cases after previous conviction. 
14AB. Certain offences to be cognizable. 
14AC. Cognizance and trial of offences. 
14B. Power to recover damages. 
14C. Power of court to make orders. 
15.  Special provisions relating to existing provident funds. 
16.  Act not to apply to certain establishments. 
16A. Authorising certain employers to maintain provident fund accounts. 
17.  Power to exempt. 
17A. Transfer of accounts. 
17AA. Act to have effect notwithstanding anything contained in Act 31 of 1956. 
17B. Liability in case of transfer of establishment. 
18.  Protection of action taken in good faith. 
18A. Authorities and inspector to be public servant. 
19.  Delegation of powers. 
20.  Power of Central Government to give directions. 
21.  Power to make rules. 
22.  Power to remove difficulties. 

SCHEDULE I. 
SCHEDULE II. 
SCHEDULE III. 
SCHEDULE IV. 

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THE EMPLOYEES’ PROVIDENT FUNDS AND  MISCELLANEOUS PROVISIONS           

ACT, 1952 
ACT NO. 19 OF 19521 

[4th March, 1952.] 
An  Act  to  provide  for  the  institution  of  provident  funds  2[,3[pension  fund]  and  deposit-linked 

insurance fund] for employees in factories and other establishments. 

BE it enacted by Parliament as follows:— 

1.  Short  title,  extent  and  application.—4[(1)  This  Act  may  be  called  the  Employees’  Provident 

Funds and Miscellaneous Provisions Act, 1952.] 

(2) It extends to the whole of India 5***. 

6[(3) Subject to the provisions contained in section 16, it applies— 

(a) to every establishment which is a factory engaged in any industry specified in Schedule I and 

in which 7[twenty] or more persons are employed, and 

(b)  to  any  other  establishment  employing  6[twenty]  or  more  persons  or  class  of  such 
establishments which the Central Government may, by notification in the Official Gazette, specify in 
this behalf: 

Provided  that  the  Central  Government  may,  after  giving  not  less  than  two  months’  notice  of  its 
intention  so  to  do,  by  notification  in  the  Official  Gazette,  apply  the  provisions  of  this  Act  to  any 
establishment  employing  such  number  of  persons  less  than  6[twenty]  as  may  be  specified  in  the 
notification.] 

8[(4)  Notwithstanding  anything  contained  in  sub-section  (3)  of  this  section  or  sub-section  (1)  of 
section  16,  where  it  appears  to  the  Central  Provident  Fund  Commissioner,  whether  on  an  application 
made to him in this behalf or otherwise, that the employer and the majority of employees in relation to 
any  establishment  have  agreed  that  the  provisions  of  this  Act  should  be  made  applicable  to  the 
establishment,  he  may,  by  notification  in  the  Official  Gazette,  apply  the  provisions  of  this  Act  to  that 
establishment  on  and  from  the  date  of  such  agreement  or  from  any  subsequent  date  specified  in  such 
agreement.] 

9[(5)  An  establishment  to  which  this  Act  applies  shall  continue  to  be  governed  by  this  Act 

notwithstanding that the number of persons employed therein at any time falls below twenty.] 

10*   
2. Definitions.—In this Act, unless the context otherwise requires,— 

 *  

 * 

*  

* 

11[(a) “appropriate Government” means— 

1. This Act has been extended to Dadra and Nagar Haveli by Reg. 6 of 1963, s. 2 and the First Schedule: Pondicherry by Reg.  

7 of 1963, s. 3 and the First Schedule and Goa, Daman and Diu by Reg. 11 of 1963, s. 3 and Schedule (1-7-1964). 

2. Subs. by Act 99 of 1976, s. 16, for “and family pension fund” (w.e.f. 1-8-1976). 
3. Subs. by Act 25 of 1996, s. 2, for “family pension fund” (w.e.f. 16-11-1995). 
4. Subs. by Act 99 of 1976, s. 17, for sub-section (1) (w.e.f. 1-8-1976). 
5. The Words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-10-
2019) and extended to the Union territory of Jammu and Kashmir and Union territory of Ladakh by notification No. S.O. 
3962(E), Part II-section 3-Sub-section (ii) dated 31-10-20 (w.e.f. 1-1-2020). 

6. Subs. by Act 94 of 1956, s. 2, for sub-section (3). 
7. Subs. by Act 46 of 1960, s. 2, for “fifty” (w.e.f. 31-12-1960). 
8. Subs. by Act 33 of 1988, s. 2, for sub-section (4) (w.e.f. 1-8-1988). 
9. Ins. by Act 46 of 1960, s. 2 (w.e.f. 31-12-1960). 
10. The proviso omitted by Act 16 of 1971, s. 13 (w.e.f. 23-4-1971). 
11. Subs. by Act 22 of 1958, s. 2, for clause (a). 

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(i)  in  relation  to  an  establishment  belonging  to,  or  under  the  control  of,  the  Central 
Government or in relation to an establishment connected with a railway company, a major port, a 
mine  or  an  oilfield  or  a  controlled  industry,  1[or  in  relation  to  an  establishment  having 
departments or branches in more than one State,] the Central Government; and 

(ii) in relation to any other establishment, the State Government;] 

2[(aa) “authorised officer” means the Central Provident Fund Commissioner, Additional Central 
Provident  Fund  Commissioner,  Deputy  Provident  Fund  Commissioner,  Regional  Provident  Fund 
Commissioner or such other officer as may be authorised by the Central Government, by notification 
in the Official Gazette;] 

(b) “basic wages” means all emoluments which are earned by an employee while on duty or 3[ on 
leave  or  on  holidays  with  wages  in  either  case]  in  accordance  with  the  terms  of  the  contract  of 
employment and which are paid or payable in cash to him, but does not include— 

(i) the cash value of any food concession; 

(ii) any dearness allowance (that is to say, all cash payments by whatever name called paid to 
an employee on account of a rise in the cost of living), house-rent allowance, overtime allowance, 
bonus  commission  or  any  other  similar  allowance  payable  to  the  employee  in  respect  of  his 
employment or of work done in such employment;  

(iii) any presents made by the employer; 

(c) “contribution” means a contribution payable in respect of a member under a Scheme  4[or the 

contribution payable in respect of an employee to whom the Insurance Scheme applies]; 

(d) “controlled industry” means any industry the control of which by the Union has been declared 

by a Central Act to be expedient in the public interest; 

5[(e) “employer” means— 

(i)  in  relation  to  an  establishment  which  is  a  factory,  the  owner  or  occupier  of  the  factory, 
including  the  agent  of  such  owner  or  occupier,  the  legal  representative  of  a  deceased  owner  or 
occupier  and,  where  a  person  has  been  named  as  a  manager  of  the  factory  under  clause  (f)  of  
sub-section (1) of section 7 of the Factories Act, 1948 (63 of 1948), the person so named; and 

(ii)  in  relation  to  any  other  establishment,  the  person  who,  or  the  authority  which,  has  the 
ultimate control over the affairs of the establishment, and where the said affairs are entrusted to a 
manager,  managing  director  or  managing  agent,  such  manager,  managing  director  or  managing 
agent;] 

(f)  “employee”  means  any  person  who  is  employed  for  wages  in  any  kind  of  work,  manual  or 
otherwise, in or in connection with the work of  6[an establishment], and who gets his wages directly 
or indirectly from the employer, 7[and includes any person— 

(i)  employed  by  or  through  a  contractor  in  or  in  connection  with  the  work  of  the 

establishment; 

1. Ins. by Act 22 of 1965, s. 2 (w.e.f. 24-11-1964). 
2. Ins. by Act 33 of 1988, s. 3 (w.e.f. 1-8-1988). 
3. Subs. by s. 3, ibid., for “on leave with wages” (w.e.f. 1-8-1988). 
4. Ins. by Act 99 of 1976, s. 18 (w.e.f. 1-8-1976). 
5. Subs. by Act 94 of 1956, s. 4, for clause (e). 
6. Subs. by ibid., s. 3, for “a factory”. 
7. Subs. by Act 33 of 1988, s. 3, for “and includes any person employed by or through a contractor in or in connection with the 

work of the establishment” (w.e.f. 1-8-1988). 

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(ii)  engaged  as  an  apprentice,  not  being  an  apprentice  engaged  under  the  Apprentices  Act, 

1961 (52 of 1961), or under the standing orders of the establishment;] 

1[(ff) “exempted employee” means an employee to whom a Scheme 2[or the Insurance Scheme, as 

the case may be,] would, but for the exemption granted under3*** section 17, have applied; 

(fff) “exempted 4[establishment]” means 5[an establishment] in respect of which an exemption has 
been granted under section 17 from the operation of all or any of the provisions of any Scheme  2[or 
the  Insurance  Scheme,  as  the  case  may  be],  whether  such  exemption  has  been  granted  to  the 
4[establishment] as such or to any person or class of persons employed therein;] 

(g)  “factory”  means  any  premises,  including  the  precincts  thereof,  in  any  part  of  which  a 
manufacturing process is being carried on or is ordinarily so carried on, whether with the aid of power 
or without the aid of power; 

6* 

* 

* 

* 

* 

(h) “Fund” means the provident fund established under a Scheme; 

(i) “industry” means any industry specified in Schedule I, and includes any other industry added 

to the Schedule by notification under section 4; 

2[(ia)  “Insurance  Fund”  means 

the  Deposit-linked  Insurance  Fund  established  under 

sub-section (2) of section 6C; 

(ib) “Insurance Scheme” means the Employees” Deposit-linked Insurance Scheme framed under 

sub-section (1) of section 6C;] 

7[8[(ic)]  “manufacture”  or  “manufacturing  process”  means  any  process  for  making,  altering, 
repairing,  ornamenting,  finishing,  packing,  oiling,  washing,  cleaning,  breaking  up,  demolishing  or 
otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery 
or disposal;] 

(j) “member” means a member of the Fund; 

(k)  “occupier  of  a  factory”  means  the  person  who  has  ultimate  control  over  the  affairs  of  the 
factory, and, where the said affairs are entrusted to a managing agent, such agent shall be deemed to 
be the occupier of the factory; 

9[(kA) “Pension Fund” means the Employees’ Pension Fund established under sub-section (2) of 

section 6A; 

(kB) “Pension Scheme” means the Employees’ Pension Scheme framed under sub-section (1) of 

section 6A;] 

10[(ka) “prescribed” means prescribed by rules made under this Act; 

1. Ins. by Act 37 of 1953, s. 3.  
2. Ins. by Act 99 of 1976, s. 18 (w.e.f. 1-8-1976). 
3. The words, brackets and figure “sub-section (1) of” omitted by Act 28 of 1963, s. 2 (w.e.f. 30-11-1963). 
4. Subs. by Act 94 of 1956, s. 3, for “factory”. 
5. Subs. by s. 3, ibid., for “a factory”. 
6. Omitted by Act 25 of 1996, s. 3 (w.e.f. 16-11-1995). 
7. Subs. by Act 28 of 1963, s. 2, for clause (ia) (w.e.f. 30-11-1963). 
8. Clause (ia) re-lettered as clause (ic) by Act 99 of 1976, s. 18 (w.e.f. 1-8-1976). 
9. Ins. by Act 25 of 1996, s. 3 (w.e.f. 16-11-1995). 
10. Ins. by Act 33 of 1988, s. 3 (w.e.f. 1-8-1988). 

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(kb) “Recovery Officer” means any officer of the Central Government, State Government or the 
Board of Trustees constituted under section 5A, who may be authorised by the Central Government, 
by notification in the Official Gazette, to exercise the powers of a Recovery Officer under this Act;] 

1[(l) “Scheme” means the Employees’ Provident Fund Scheme framed under section 5.] 

2[(ll) “Superannuation”, in relation to an employee, who is the  member of the Pension  Scheme 

means the attainment, by the said employee, of the age of fifty-eight years;] 

3[(m) “Tribunal” means the Industrial Tribunal referred to in section 7 D]. 

4[2A.  Establishment to  include  all  departments  and  branches.—For  the  removal  of  doubts, it is 
hereby declared that where an establishment consists of different departments or has branches, whether 
situate in the same place or in different places, all such departments or branches shall be treated as parts 
of the same establishment.] 

5[3. Power to apply Act to an establishment which has a common provident fund with another 
establishment.—Where immediately before this Act becomes applicable to an establishment there is in 
existence  a  provident  fund  which  is  common  to  the  employees  employed  in  that  establishment  and 
employees in any other establishment, the Central Government may, by notification in Official Gazette, 
direct that the provisions of this Act shall also apply to such other establishment.] 

4. Power  to  add to  Schedule I.—(1) The  Central  Government  may,  by  notification in the  Official 
Gazette, add to Schedule I any other industry in respect of the employees whereof it is of opinion that a 
provident  fund  scheme  should  be  framed  under  this  Act,  and  thereupon  the  industry  so  added  shall  be 
deemed to be an industry specified in Schedule I for the purposes of this Act. 

(2)  All  notifications  under sub-section  (1) shall be laid  before  Parliament,  as  soon  as  may  be,  after 

they are issued. 

5. Employees’ Provident Fund Schemes.—6[(1)] The Central  Government may, by notification in 
the  Official  Gazette,  frame  a  Scheme  to  be  called  the  Employees’  Provident  Fund  Scheme  for  the 
establishment of provident funds under this Act for employees or for any class of employees and specify 
the 7[establishments] or class of  7[establishments] to which the said Scheme shall apply  8[and there shall 
be  established,  as  soon  as  may  be  after  the  framing  of  the  Scheme,  a  Fund  in  accordance  with  the 
provisions of this Act and the Scheme].  

9[(1A)  The  Fund  shall  vest in,  and  be administered  by,  the  Central  Board  constituted  under  section 

5A. 

(1B) Subject to the provisions of this Act, a Scheme framed under sub-section (1) may provide for all 

or any of the matters specified in Schedule II.] 

10[(2) A Scheme framed under sub-section (1) may provide that any of its provisions shall take effect 

either prospectively or retrospectively on such date as may be specified in this behalf in the Scheme.] 

1. Subs. by Act 16 of 1971, s. 14, for clause (l) (w.e.f. 23-4-1971). 
2. Ins. by Act 25 of 1996, s. 3 (w.e.f. 16-11-1995). 
3. Ins. by Act 7 of 2017, s. 159 (w.e.f. 26-5-2017). 
4. Ins. by Act 46 of 1960, s. 3 (w.e.f. 31-12-1960). 
5. Subs. by Act 94 of 1956, s. 5, for section 3. 
6. Section 5 re-numbered as sub-section (1) thereof by Act 37 of 1953, s. 4. 
7. Subs. by Act 94 of 1956, s. 3, for “factories”. 
8. Added by Act 37 of 1953, s. 4. 
9. Ins. by Act 28 of 1963, s. 3 (w.e.f. 30-11-1963). 
10. Ins. by Act 37 of 1953, s. 4. 

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1[5A.  Central  Board.—(1)  The  Central  Government  may,  by  notification  in  the  Official  Gazette, 
constitute, with effect from such date as may be specified therein, a Board of Trustees for the territories to 
which  this  Act  extends  (hereinafter  in  this  Act  referred  to  as  the  Central  Board)  consisting  of  the 
following 2[persons as members] namely:— 

(a) 3[a Chairman and a Vice-Chairman] to be appointed by the Central Government;  

4[(aa) the Central Provident Fund Commissioner, ex officio;] 

(b) not more than five persons appointed by the Central Government from amongst its officials; 

(c)  not  more  than  fifteen  persons  representing  Governments  of  such  States  as  the  Central 

Government may specify in this behalf, appointed by the Central Government; 

(d)  5[ten  persons]  representing  employers  of  the  establishments  to  which  the  Scheme  applies, 
appointed by the Central Government after consultation with such organisations of employers as may 
be recognised by the Central Government in this behalf; and 

(e)  5[ten  persons]  representing  employees  in  the  establishments  to  which  the  Scheme  applies, 
appointed by the Central Government after consultation with such organisations of employees as may 
be recognised by the Central Government in this behalf. 

(2) The terms and conditions subject to which a member of the Central Board may be appointed and 
the time, place and procedure of the meetings of the Central Board shall be such as may be provided for 
in the Scheme. 

(3) The Central Board shall  6[, subject to the provisions of section 6A  7[and section 6C]] administer 

the Fund vested in it in such manner as may be specified in the Scheme. 

(4) The Central Board shall perform such other functions as it may be required to perform by or under 

any provisions of the Scheme 8[, the 9[Pension] Scheme and the Insurance Scheme]. 

10[(5) The Central Board shall maintain proper accounts of its income and expenditure in such form 
and in such manner as the Central Government may, after consultation with the Comptroller and Auditor- 
General of India, specify in the Scheme. 

(6)  The  accounts  of  the  Central  Board  shall  be  audited  annually  by  the  Comptroller  and  Auditor-
General of India and any expenditure incurred by him in connection with such audit shall be payable by 
the Central Board to the Comptroller and Auditor-General of India. 

(7)  The  Comptroller  and  Auditor-General  of  India  and  any  person  appointed  by  him  in  connection 
with the audit of the accounts of the Central Board shall have the same rights and privileges and authority 
in connection with such audit as the Comptroller and Auditor-General has, in connection with the audit of 
Government accounts and, in particular, shall have the right to demand the production of books, accounts, 
connected vouchers, documents and papers and inspect any of the offices of the Central Board. 

(8) The accounts of the Central Board as certified by the Comptroller and Auditor-General of India or 
any other person appointed by him in this behalf together with the audit report thereon shall be forwarded 

1. Ins. by Act 28 of 1963, s. 4. 
2. Subs. by Act 33 of 1988, s. 4, for “persons” (w.e.f. 1-8-1988). 
3. Subs. by s. 4, ibid., for “a chairman” (w.e.f. 1-8-1988). 
4. Ins. by s. 4, ibid. (w.e.f. 1-8-1988). 
5. Subs. by s. 4, ibid., for “six persons” (w.e.f. 1-8-1988). 
6. Ins. by Act 16 of 1971, s. 15 (w.e.f. 23-4-1971). 
7. Ins. by Act 99 of 1976, s. 19 (w.e.f. 1-8-1976). 
8. Subs. by s. 19, ibid., for “and the Family Pension Scheme” (w.e.f. 1-8-1976).  
9. Subs. by Act 25 of 1996, s. 4, for “Family Pension” (w.e.f. 16-11-1995). 
10. Ins. by Act 33 of 1988, s. 4 (w.e.f. 1-8-1988). 

7 

 
                                                           
to the Central Board which shall forward the same to the Central Government along with its comments on 
the report of the Comptroller and Auditor-General. 

(9) It shall be the duty of the Central Board to submit also to the Central Government an annual report 
of its work and activities and the Central Government shall cause a copy of the annual report, the audited 
accounts together with the report of the Comptroller and Auditor-General of India and the comments of 
the Central Board thereon to be laid before each House of Parliament.] 

1[5AA.  Executive  Committee.—(1)  The  Central  Government  may,  by  notification  in  the  Official 
Gazette,  constitute,  with effect from  such  date  as  may  be  specified therein, an Executive  Committee to 
assist the Central Board in the performance of its functions. 

(2) The Executive Committee shall consist of the following persons as members, namely:— 

(a) a Chairman appointed by the Central Government from amongst the members of the Central 

Board; 

(b)  two  persons  appointed  by  the  Central  Government  from  amongst  the  persons  referred  to  in 

clause (b) of sub-section (1) of section 5A; 

(c) three persons appointed by the Central Government from amongst the persons referred to in 

clause (c) of sub-section (1) of section 5A; 

(d)  three  persons  representing  the  employers  elected  by  the  Central  Board  from  amongst  the 

persons referred to in clause (d) of sub-section (1) of section 5A; 

(e)  three  persons  representing  the  employees  elected  by  the  Central  Board  from  amongst  the 

persons referred to in clause (e) of sub-section (1) of section 5A; 

(f) the Central Provident Fund Commissioner, ex officio. 

(3) The terms and conditions subject to which a member of the Central Board may be appointed or 
elected to the Executive Committee and the time, place and procedure of the meetings of the Executive 
Committee shall be such as may be provided for in the Scheme]. 

5B. State Board.—(1) The Central Government may, after consultation with the Government of any 
State, by notification in the Official Gazette, constitute for that State a Board of Trustees (hereinafter in 
this Act referred to as the State Board) in such manner as may be provided for in the Scheme. 

(2) A State Board shall exercise such powers and perform such duties as the Central Government may 

assign to it from time to time. 

(3) The terms and conditions subject to which a member of a State Board may be appointed and the 
time, place and procedure of the meetings of a State Board shall be such as may be provided for in the 
Scheme. 

5C. Board of Trustees to body corporate.—Every Board of Trustees constituted under section 5A 
or section 5B shall be a body corporate under the name specified in the notification constituting it, having 
perpetual succession and a common seal and shall by the said name sue and be sued. 

5D. Appointment of officers.—(1) The Central Government shall appoint a Central Provident Fund 
Commissioner who shall be the chief executive officer of the Central Board and shall be subject to the 
general control and superintendence of that Board. 

(2) The Central Government may also appoint 2[a Financial Adviser and Chief Accounts Officers] to 

assist the Central Provident Fund Commissioner in the discharge of his duties. 

1. Ins. by Act 33 of 1988, s. 5 (w.e.f. 1-8-1988). 
2. Subs. by Act 33 of 1988, s. 6, for certain words (w.e.f. 1-8-1988). 

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(3) The Central Board may appoint  1[, subject to the maximum scale of pay, as may be specified in 
the  Scheme,  as  many  Additional  Central  Provident  Fund  Commissioners,  Deputy  Provident  Fund 
Commissioners, Regional Provident Fund Commissioners, Assistant Provident Fund Commissioners and] 
such  other  officers  and  employees  as  it  may  consider  necessary  for  the  efficient  administration  of  the 
Scheme 2[, the 3[Pension] Scheme and the Insurance Scheme]. 

(4)  No  appointment  to  4[the  post  of  the  Central  Provident  Fund  Commissioner  or  an  Additional 
Central  Provident  Fund  Commissioner or a  Financial Adviser  and  Chief  Accounts  Officer  or  any  other 
post under the Central Board carrying a scale of pay equivalent to the scale of pay of any Group  ‘A’ or 
Group  ‘B’  post  under the Central  Government]  shall  be  made  except  after  consultation  with the  Union 
Public Service Commission: 

Provided that no such consultation shall be necessary in regard to any such appointment— 

(a) for a period not exceeding one year; or 

(b) if the person to be appointed is at the time of his appointment— 

(i) a member of the Indian Administrative Service, or 

(ii) in the service of the Central Government or a State Government or the Central Board in a 

5[Group ‘A’ or Group ‘B’ post]. 

(5) A State Board may, with the approval of the State Government concerned, appoint such staff as it 

may consider necessary. 

(6) The method of recruitment, salary and allowances, discipline and other conditions of service of 
the Central Provident Fund Commissioner, 6[and the Financial Adviser and Chief Accounts Officer] shall 
be such as may be specified by the Central Government and such salary and allowances shall be paid out 
of the Fund. 

7[(7) (a) The method of recruitment, salary and allowances, discipline and other conditions of service 
of  the  Additional  Central  Provident  Fund  Commissioner,  Deputy  Provident  Fund  Commissioner, 
Regional Provident Fund Commissioner, Assistant Provident Fund Commissioner and other officers and 
employees  of  the  Central Board  shall  be  such  as  may  be  specified  by  the  Central  Board  in  accordance 
with  the  rules  and  orders  applicable  to  the  officers  and  employees  of  the  Central  Government  drawing 
corresponding scales of pay: 

Provided that where the Central Board is of the opinion that it is necessary to make a departure from 
the said rules or orders in respect of any of the matters aforesaid, it shall obtain the prior approval of the 
Central Government. 

(b)  In  determining  the  corresponding  scales  of  pay  of  officers  and  employees  under  clause  (a),  the 
Central  Board  shall  have  regard  to  the  educational  qualifications,  method  of  recruitment,  duties  and 
responsibilities of such officers and employees under the Central Government and in case of any doubt, 
the Central Board shall refer the matter to the Central Government whose decision thereon shall be final.] 

1. Ins. by Act 33 of 1988, s. 6. (w.e.f. 1-8-1988). 
2. Subs. by Act 99 of 1976, s. 20, for “and the Family Pension Scheme” (w.e.f. 1-8-1976). 
3. Subs. by Act 25 of 1996, s. 4, for “Family Pension” (w.e.f. 16-11-1995). 
4. Subs. by Act 33 of 1988, s. 6, for certain words (w.e.f. 1-8-1988). 
5. Subs. by s. 6, ibid., for “Class I or Class II post” (w.e.f. 1-8-1988). 
6.  Subs.  by  s.  6,  ibid.,  for  “,Deputy  Provident  Fund  Commissioner  and  Regional  Provident  Fund  Commissioner”  

(w.e.f. 1-8-1988). 

7. Subs. by s. 6, ibid., for sub-section (7) (w.e.f. 1-8-1988). 

9 

 
                                                           
 (8) The method of recruitment, salary and allowances, discipline and other conditions of service of 
officers  and  employees  of  a  State  Board  shall  be  such  as  may  be  specified  by  that  Board,  with  the 
approval of the State Government concerned. 

1[5DD.  Acts  and  proceedings  of  the  Central  Board  or  its  Executive  Committee  or  the  State 
Board  not  to  be  in  validated  on  certain  grounds.—No  act  done  or  proceeding  taken  by  the  Central 
Board or the Executive Committee constituted under section 5AA or the State Board shall be questioned 
on the ground merely of the existence of any vacancy in, or any defect in the constitution of, the Central 
Board or the Executive Committee or the State Board, as the case may be.] 

5E. Delegation.—2[The Central Board may delegate to the Executive Committee or to the Chairman 
of  the  Board  or  to  any  of  its  officers  and  a  State  Board  may  delegate  to  its  Chairman  or  to  any  of  its 
officers]  subject  to  such  conditions  and  limitations,  if  any,  as  it  may  specify,  such  of  its  powers  and 
functions under this Act as it may deem necessary for the efficient administration of the Scheme  3[, the 
4[Pension] Scheme and the Insurance Scheme].]  

6.  Contributions  and  matters  which  may  be  provided  for  in  Schemes.—5***  The  contribution 
which shall be paid by the employer to the Fund shall be  6[ten per cent.] of the basic wages,  7[dearness 
allowance  and  retaining  allowance  (if  any)]  for  the  time  being  payable  to  each  of  the  employees 
8[(whether  employed  by  him  directly  or  by  or  through  a  contractor)],  and  the  employees’  contribution 
shall be equal to the contribution payable by the employer in respect of him and may,  9[if any employee 
so desires, be an amount exceeding  6[ten per cent.]of his basic wages, dearness allowance and retaining 
allowance (if any), subject to the condition that the employer shall not be under an obligation to pay any 
contribution over and above his contribution payable under this section]: 

9[Provided  that  in  its  application  to  any  establishment  or  class  of  establishments  which  the  Central 
Government,  after  making  such  inquiry  as  it  deems  fit,  may,  by  notification  in  the  Official  Gazette 
specify,  this  section  shall  be  subject  to  the  modification  that  for  the  words  6[ten  per  cent.],  at  both  the 
places where they occur, the words 10[twelve per cent.]shall be substituted:] 

Provided further that where the amount of any contribution payable under this Act involves a fraction 
of a rupee, the Scheme may provide for the rounding off of such fraction to the nearest rupee, half of a 
rupee or quarter of a rupee. 

11[Explanation  1].—For  the  purposes  of  this  12[section],  dearness  allowance  shall  be  deemed  to 

include also the cash value of any food concession allowed to the employee. 

13[Explanation  2.—For  the  purposes  of  this  12[section],  “retaining  allowance”  means  an  allowance 
payable  for  the  time  being  to  an  employee  of  any  factory  or  other  establishment  during  any  period  in 
which the establishment is not working, for retaining his services.] 

14*   

 * 

 * 

 * 

 * 

1. Ins. by Act 33 of 1988, s. 7. (w.e.f. 1-8-1988). 
2. Subs. by s. 8, ibid., for certain words (w.e.f. 1-8-1988). 
3. Subs. by Act 99 of 1976, s. 20, for “and the Family Pension Scheme” (w.e.f. 1-8-1976). 
4. Subs. by Act 25 of 1996, s. 4, for “Family Pension” (w.e.f. 16-11-1995). 
5. The brackets and figure “(1)” omitted by Act 28 of 1963, s. 5 (w.e.f. 30-11-1963). 
6. Subs. by Act 10 of 1998, s. 2, for “eight and one-third per cent.” (w.e.f. 22-9-1997). 
7. Subs. by Act 46 of 1960, s. 4, for “and the dearness allowance” (w.e.f. 31-12-1960). 
8. Ins. by Act 28 of 1963, s. 5 (w.e.f. 30-11-1963). 
9. Subs. by Act 33 of 1988, s. 9, for certain words (w.e.f. 1-8-1988). 
10. Subs. by Act 10 of 1998, s. 2, for “ten per cent.” (w.e.f. 22-9-1997). 
11. The Explanation re-numbered as Explanation1 by Act 46 of 1960, s. 4 (w.e.f. 31-12-1960). 
12. Subs. by Act 28 of 1963, s. 5, for “sub-section” (w.e.f. 30-11-1963). 
13. The Explanation ins. by Act 46 of 1960, s. 4 (w.e.f. 31-12-1960). 
14. Omitted by Act 28 of 1963, s. 5 (w.e.f. 30-11-1963). 

10 

 
 
 
 
 
 
 
 
                                                           
1[6A.  Employees’  Pension  Scheme.—(1)  The  Central  Government  may,  by  notification  in  the 
Official  Gazette,  frame  a  scheme  to  be  called  the  Employees’  Pension  Scheme  for  the  purpose  of 
providing for— 

(a)  superannuation  pension,  retiring  pension  or  permanent  total  disablement  pension  to  the 

employees of any establishment or class of establishments to which this Act applies; and 

(b) widow or widower’s pension, children pension or orphan pension payable to the beneficiaries 

of such employees. 

(2)  Notwithstanding  anything  contained  in  section  6,  there  shall  be  established,  as  soon  as  may  be 
after framing of the Pension Scheme, a Pension Fund into which there shall be paid, from time to time, in 
respect of every employee who is a member of the Pension Scheme,— 

(a)  such  sums  from  the  employer’s  contribution  under  section  6,  not  exceeding  eight  and  
one-third  per  cent.  of  the  basic  wages,  dearness  allowance  and  retaining  allowance,  if  any,  of  the 
concerned employees, as may be specified in the Pension Scheme; 

(b) such sums as are payable by the employers of exempted establishments under sub-section (6) 

of section 17; 

(c) the net assets of the Employees' Family Pension Fund as on the date of the establishment of 

the Pension Fund; 

(d) such sums as the Central Government may, after due appropriation by Parliament by law in 

this behalf, specify. 

(3) On the establishment of the Pension Fund, the Family Pension Scheme (hereinafter referred to as 
the ceased scheme) shall cease to operate and all assets of the ceased scheme shall vest in and shall stand 
transferred to, and all liabilities under the ceased scheme shall be enforceable against, the Pension Fund 
and  the  beneficiaries  under  the  ceased  scheme  shall  be  entitled  to  draw  the  benefits,  not  less  than  the 
benefits they were entitled to under the ceased scheme, from the Pension Fund. 

(4) The Pension Fund shall vest in and be administered by the Central Board in such manner as may 

be specified in the Pension Scheme. 

(5) Subject to the provisions of this Act, the Pension Scheme may provide for all or any of the matters 

specified in Schedule III. 

(6)  The  Pension  Scheme  may  provide  that  all  or  any  of  its  provisions  shall  take  effect  either 

prospectively or retrospectively on such date as may be specified in that behalf in that Scheme. 

(7) A Pension Scheme, framed under sub-section (1), shall be laid, as soon as may be after it is made, 
before  each  House  of  Parliament,  while  it  is  in  session,  for  a  total  period  of  thirty  days  which  may  be 
comprised in one session or in two or more successive sessions, and if, before the expiry of the session 
immediately following the session or the successive sessions aforesaid, both Houses agree in making any 
modification in the scheme or both Houses agree that the scheme should not be made, the scheme shall 
thereafter have effect only in such modified form or be of no effect, as the may be; so, however, that any 
such  modification  or  annulment  shall  be  without  prejudice  to  the  validity  of  anything  previously  done 
under that Scheme.] 

2[6C.  Employees’  Deposit  linked  Insurance  Scheme.—(1)  The  Central  Government  may,  by 
notification in the Official Gazette, frame a scheme to be called the Employees’ Deposit-linked Insurance 
Scheme  for  the  purpose  of  providing  life  insurance  benefits  to  the  employees  of  any  establishment  or 
class of establishments to which this Act applies. 

1. Subs. by Act 25 of 1996, s. 5, for sections 6A and 6B (w.e.f. 16-11-1995). 
2. Ins. by Act 99 of 1976, s. 21 (w.e.f. 1-8-1976). 

11 

 
                                                           
(2)  There  shall  be  established,  as  soon  as  may  be  after  the  framing  of  the  Insurance  Scheme,  a 
Deposit-linked Insurance Fund into which shall be paid by the employer from time to time in respect of 
every such employee in relation to whom he is the employer, such amount, not being more than one per 
cent. of the aggregate of the basic wages, dearness allowance and retaining allowance (if any) for the time 
being payable in relation to such employee as the Central Government may, by notification in the Official 
Gazette, specify. 

Explanation.—For  the  purposes  of  this  sub-section,  the  expressions  “dearness  allowance”  and 

“relating allowance” have the same meanings as in section 6. 

1* 

* 

* 

* 

* 

(4) (a) The employer shall pay into the Insurance Fund such further sums of money, not exceeding 
one-fourth  of  the  contribution  which  he  is  required  to  make  under  sub-section  (2),  as  the  Central 
Government  may,  from  time  to  time,  determine  to  meet  all  the  expenses  in  connection  with  the 
administration of the Insurance Scheme other than the expenses towards the cost of any benefits provided 
by or under that scheme. 

1* 

* 

* 

* 

* 

(5) The Insurance Fund shall vest in the Central Board and be administered by it in such manner as 

may be specified in the Insurance Scheme. 

(6) The Insurance Scheme may provide for all or any of the matters specified in Schedule IV. 

(7) The Insurance Scheme may provide that any of its provisions shall take effect either prospectively 

or retrospectively on such date as may be specified in this behalf in that Scheme.] 

2[6D.  Laying  of  schemes  before  Parliament.—Every  scheme  framed  under  section  5,  section  6A 
and section 6C shall be laid, as soon as may be after it is framed, before each House of Parliament, while 
it is in session, for a total period of thirty days which may be comprised in one session or in two or more 
successive  sessions,  and  if,  before  the  expiry  of  the  session  immediately  following  the  session  or  the 
successive  sessions  aforesaid,  both  Houses  agree  in  making  any  modification  in  the  scheme,  or  both 
Houses agree that the scheme should not be framed, the scheme shall thereafter have effect only in such 
modified  form  or  be  of  no  effect,  as  the  case  may  be;  so,  however,  that  any  such  modification  or 
annulment shall be without prejudice to the validity of anything previously done under that scheme.] 

7.  Modification  of  scheme.—(1)  The  Central  Government  may,  by  notification  in  the  Official 
Gazette,  add  to  3[amend  or  vary,  either  prospectively  or  retrospectively,  the  Scheme,  the  4[Family 
Pension] Scheme or the Insurance Scheme, as the case may be]. 

5[(2) Every notification issued under sub-section (1) shall be laid, as soon as may be after it is issued, 
before each House of Parliament, while it is in session, for a total period of thirty days, which  may be 
comprised in one session or in two or more successive sessions, and if, before the expiry of the session 
immediately following the session or the successive sessions aforesaid, both Houses agree in making any 
modification  in  the  notification,  or  both  Houses  agree  that  the  notification  should  not  be  issued,  the 
notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; 
so,  however,  that  any  such  modification  or  annulment  shall  be  without  prejudice  to  the  validity  of 
anything previously done under that notification.] 

1. Omitted by Act 25 of 1996, s. 6 (w.e.f. 16-11-1995). 
2. Ins. by Act 4 of 1986, s. 2 and Schedule (w.e.f. 15-5-1986). 
3.  Subs.  by  Act  99  of  1976,  s.  22,  for  “amend  or  vary  the  Scheme  or  the  Family  Pension  Scheme,  as  the  case  may  be”  

(w.e.f. 1-8-1976). 

4. Subs. by Act 25 of 1996, s. 4, for “Family Pension” (w.e.f. 16-11-1995). 
5. Subs. by Act 4 of 1986, s. 2 and Schedule, for sub-section (2) (w.e.f. 15-5-1986). 

12 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
1[7A.  Determination  of  moneys  due  from  employers.—2[(1)  The  Central  Provident  Fund 
Commissioner,  any  Additional  Central  Provident  Fund  Commissioner,  any  Deputy  Provident  Fund 
Commissioner,  any  Regional  Provident  Fund  Commissioner,  or  any  Assistant  Provident  Fund 
Commissioner may, by order,— 

(a)  in  a  case  where  a  dispute  arises  regarding  the  applicability  of  this  Act  to  an  establishment, 

decide such dispute; and 

(b) determine the amount due from any employer under any provision of this Act, the Scheme or 

the 3[Pension] Scheme or the Insurance Scheme, as the case may be, 

and for any of the aforesaid purposes may conduct such inquiry as he may deem necessary]; 

(2) The officer conducting the inquiry under sub-section (1) shall, for the purposes of such inquiry, 
have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (5 of 1908), for 
trying a suit in respect of the following matters, namely:— 

(a) enforcing the attendance of any person or examining him on oath; 

(b) requiring the discovery and production of documents; 

(c) receiving evidence on affidavit; 

(d) issuing commissions for the examination of witnesses; 

and any such inquiry shall be deemed to be a judicial proceeding within the meaning of sections 193 and 
228, and for the purpose of section 196, of the Indian Penal Code (45 of 1860). 

(3) No order  4*** shall be made under sub-section (1), unless  5[the employer concerned] is given a 

reasonable opportunity of representing his case. 

6[(3A)  Where  the  employer,  employee  or  any  other  person  required  to  attend  the  inquiry  under  
sub-section  (1)  fails  to  attend  such  inquiry  without  assigning  any  valid  reason  or  fails  to  produce  any 
document or to file any report or return when called upon to do so, the officer conducting the inquiry may 
decide the applicability of the Act or determine the amount due from any employer, as the case may be, 
on the basis of the evidence adduced during such inquiry and other documents available on record.] 

7[(4)  Where  an  order  under  sub-section (1) is  passed against an  employer  ex  parte,  he  may,  within 
three  months from  the date  of communication  of  such  order, apply  to  the  officer  for setting  aside  such 
order  and  if  he  satisfies  the  officer  that  the  show  cause  notice  was  not  duly  served  or  that  he  was 
prevented by any sufficient cause from appearing when the inquiry was held, the officer shall make an 
order setting aside his earlier order and shall appoint a date for proceeding with the inquiry: 

Provided that no such order shall be set aside merely on the ground that there has been an irregularity 
in the service of the show cause notice if the officer is satisfied that the employer had notice of the date of 
hearing and had sufficient time to appear before the officer. 

Explanation.—Where  an  appeal  has been  preferred  under  this  Act  against  an  order  passed  ex  parte 
and such appeal has been disposed of otherwise than on the ground that the appellant has withdrawn the 
appeal, no application shall lie under this sub-section for setting aside the ex parte order. 

1. Ins. by Act 28 of 1963, s. 6 (w.e.f. 30-11-1963). 
2. Subs. by Act 33 of 1988, s. 10, for sub-section (1) (w.e.f. 1-8-1988). 
3. Subs. by Act 25 of 1996, s. 4, for “Family Pension” (w.e.f. 16-11-1995). 
4. The words “determining the amount due from employer” omitted by Act 33 of 1988, s. 10. (w.e.f. 1-8-1988). 
5. Subs. by s. 10, ibid., for “the employer” (w.e.f. 1-8-1988). 
6. Ins. by s. 10, ibid. (w.e.f. 1-8-1988). 
7. Subs. by s. 10, ibid., for sub-section (4) (w.e.f. 1-8-1988). 

13 

 
                                                           
(5)  No  order  passed  under  this  section  shall  be  set  aside  on  any  application  under  sub-section  (4) 

unless notice thereof has been served on the opposite party.] 

1[7B.  Review  of  orders  passed  under  section  7A.—(1)  Any  person  aggrieved  by  an  order  made 
under  sub-section  (1)  of  section  7A,  but  from  which  no  appeal  has  been  preferred  under  this  Act,  and 
who,  from  the  discovery  of  new  and  important  matter  or  evidence  which,  after  the  exercise  of  due 
diligence was not within his knowledge or could not be produced by him at the time when the order was 
made, or on account of some mistake or error apparent on the face of the record or for any other sufficient 
reason, desires to obtain a review of such order may apply for a review of that order to the officer who 
passed the order: 

Provided  that  such  officer  may  also  on  his  own  motion  review  his  order  if  he  is  satisfied  that  it  is 

necessary so to do on any such ground. 

(2)  Every  application  for  review  under  sub-section  (1)  shall  be  filed  in  such  form  and  manner  and 

within such time as may be specified in the Scheme. 

(3)  Where  it  appears  to  the  officer  receiving  an  application  for  review  that  there  is  no  sufficient 

ground for a review, he shall reject the application. 

(4) Where the officer is of opinion that the application for review should be granted, he shall grant the 

same: 

Provided that,— 

(a) no such application shall be granted without previous notice to all the parties before him to 
enable them to appear and be heard in support of the order in respect of which a review is applied  
for, and 

(b)  no  such  application  shall  be  granted  on  the  ground  of  discovery  of  new  matter  or  evidence 
which the applicant alleges was not within his knowledge or could not be produced by him when the 
order was made, without proof of such allegation. 

(5)  No  appeal  shall  lie  against  the  order  of  the  officer  rejecting  an  application  for  review,  but  an 
appeal under this Act shall lie against an order passed under review as if the order passed under review 
were the original order passed by him under section 7A. 

7C.  Determination  of  escaped  amount.—Where  an  order  determining  the  amount  due  from  an 

employer under section 7A or section 7B has been passed and if the officer who passed the order— 

(a) has reason to believe that by reason of the omission or failure on the part of the employer to 
make any document or report available, or to disclose, fully and truly, all material facts necessary for 
determining the correct amount due from the employer, any amount so due from such employer for 
any period has escaped his notice; 

(b) has, in consequence of information in his possession, reason to believe that any amount to be 
determined  under  section  7A  or  section  7B  has  escaped  from  his  determination  for  any  period 
notwithstanding that there has been no omission or failure as mentioned in clause (a) on the part of 
the employer, 

he may, within a period of five years from the date of communication of the order passed under section 
7A or section 7B, re-open the case and pass appropriate orders re-determining the amount due from the 
employer in accordance with the provisions of this Act: 

Provided that no order re-determining the amount due from the employer shall be passed under this 

section unless the employer is given a reasonable opportunity of representing his case.  

1. Ins. by Act 33 of 1988, s. 11(w.e.f. 1-7-1977). 

14 

 
                                                           
1[7D.  Tribunal.—The  Industrial  Tribunal  constituted  by 

the  Central  Government  under                       

sub-section (1) of section 7A of the Industrial Disputes Act, 1947 shall, on and from the commencement 
of Part XIV of Chapter VI of the Finance Act, 2017, be the Tribunal for the purposes of this Act and the 
said Tribunal shall exercise the jurisdiction, powers and authority conferred on it by or under this Act.] 

7E. [Term of office.]Omitted by the Finance Act, 2017 (7 of 2017), s. 159 (w.e.f. 26-5-2017). 

7F. [Resignation.] Omitted by s. 159, ibid. (w.e.f. 26-5-2017). 

7G.  [Salary  and  allowances  and  other  terms  and  conditions  of  or  service  of  Presiding  Officer.] 

Omitted  by s. 159, ibid. (w.e.f. 26-5-2017). 

7H. [Staff of Tribunal.] Omitted  by s. 159, ibid. (w.e.f. 26-5-2017). 

7-I.  Appeals  to  Tribunal.—(1)  Any  person  aggrieved  by  a  notification  issued  by  the  Central 
Government,  or  an  order  passed  by  the  Central  Government  or  any  authority,  under  the  proviso  to  
sub-section (3), or sub-section (4), of section 1, or section 3, or sub-section (1) of section 7A, or section 7B  

[except an order rejecting an application for review referred to in sub-section (5) thereof], or section 

7C, or section 14B, may prefer an appeal to a Tribunal against such notification or order. 

(2) Every appeal under sub-section (1) shall be filed in such form and manner, within such time and 

be accompanied by such fees, as may be prescribed. 

7J. Procedure of Tribunals.—(1) A Tribunal shall have power to regulate its own procedure in all 
matters arising out of the exercise of its powers or of the discharge of its functions including the places at 
which the Tribunal shall have its sittings. 

(2) A Tribunal shall, for the purpose of discharging its functions, have all the powers which are vested 
in the officers referred to in section 7A and any proceeding before the Tribunal shall be deemed to be a 
judicial proceeding within the meaning of sections 193 and 228, and for the purpose of section 196, of the 
Indian Penal Code (45 of 1860) and the Tribunal shall be deemed to be a civil court for the all purposes of 
section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). 

7K.  Right  of  appellant  to  take  assistance  of  legal  practitioner  and  of  Government,  etc.,  to 
appoint presenting officers.—(1) A person preferring an appeal to a Tribunal under this Act may either 
appear in person or take the assistance of a legal practitioner of his choice to present his case before the 
Tribunal. 

(2)  The  Central  Government  or  a  State  Government  or  any  other  authority  under  this  Act  may 
authorise  one  or  more  legal  practitioners  or  any  of  its  officers  to  act  as  presenting  officers  and  every 
person so authorised may present the case with respect to any appeal before a Tribunal. 

7L. Orders of Tribunal.—(1) A Tribunal may after giving the parties to the appeal, an opportunity 
of  being  heard,  pass  such  orders  thereon  as  it  thinks  fit,  confirming,  modifying  or  annulling  the  order 
appealed against or may refer the case back to the authority which passed such order with such directions 
as the Tribunal may think fit, for a fresh adjudication or order, as the case may be, after taking additional 
evidence, if necessary. 

(2) A Tribunal may, at any time within five years from the date of its order, with a view to rectifying 
any mistake apparent from the record, amend any order passed by it under sub-section (1) and shall make 
such amendment in the order if the mistake is brought to its notice by the parties to the appeal: 

Provided that  an  amendment  which  has  the  effect  of enhancing  the amount  due  from,  or  otherwise 
increasing the liability of, the employer shall not be made under this sub-section, unless the Tribunal has 
given notice to him of its intention to do so and has allowed him a reasonable opportunity of being heard. 

1. Subs. by Act 7 of 2017, s. 159, for section 7D (w.e.f. 26-5-2017). 

15 

 
                                                           
(3) A Tribunal shall send a copy of every order passed under this section to the parties to the appeal. 
(4) Any order made by a Tribunal finally disposing of an appeal shall not be questioned in any court 

of law. 

7M.  [Filling  up  of  vacancies.]  Omitted  by  the  Finance  Act,  2017  (7  of  2017),  s.  159                       

(w.e.f. 26-5-2017). 

 7N. [Finality orders constituting a tribunal.] Omitted by s. 159, ibid. (w.e.f. 26-5-2017). 
7-O. Deposit of amount due, on filing appeal.—No appeal by the employer shall be entertained by 
a  Tribunal  unless  he  has  deposited  with  it  seventy-five  per  cent.  of  the  amount  due  from  him  as 
determined by an officer referred to in section 7A: 

Provided that the Tribunal may, for reasons to be recorded in writing, waive or reduce the amount to 

be deposited under this section. 

7P. Transfer of certain applications to Tribunals.—All applications which are pending before the 
Central Government under section 19A before its repeal, shall stand transferred to a Tribunal exercising 
jurisdiction in respect of establishments in relation to which such applications had been made as if such 
applications were appeals preferred to the Tribunal. 

7Q. Interest payable by the employer.—The employer shall be liable to pay simple interest at the 
rate  of  twelve  per  cent.  per  annum  or  at  such  higher  rate  as  may  be  specified  in  the  Scheme  on  any 
amount due from him under this Act from the date on which the amount has become so due till the date of 
its actual payment: 

Provided  that  higher  rate  of  interest  specified  in  the  Scheme  shall  not  exceed  the  lending  rate  of 

interest charged by any scheduled bank.] 

1[8. Mode of recovery of moneys due from employers.—Any amount due— 

(a) from the employer in relation to 2[an establishment] to which any  3[Scheme or the Insurance 
Scheme]  applies  in  respect  of  any  contribution  payable  to  4[the  Fund  or,  as  the  case  may  be,  the 
Insurance  Fund],  damages  recoverable  under  section  14B,  accumulations  required  to  be  transferred 
under sub-section (2) of section 15 5[or under sub-section (5) of section 17] or any charges payable by 
him  under  any  other  provision  of  this  Act  or  of  any  provision  of  the  3[Scheme  or  the  Insurance 
Scheme]; or 

(b)  from  the  employer  in  relation  to  an  exempted  6[establishment]  in  respect  of  any  damages 
recoverable under section 14B or any charges payable by him to the appropriate Government under 
any provision of this Act or under any of the conditions specified 7[under section 17 or in respect of 
the contribution payable by him towards the 8[Pension] Scheme under the said section 17], 
may,if the amount is in arrear, 9[be recovered 10[in the manner specified in sections 8B to 8G].] 

11[8A.  Recovery  of  moneys  by  employers  and  contractors.—(1)  12[The  amount  of  contribution 
(that  is  to  say  the  employer’s  contribution  as  well  as  the  employee’s  contribution  in  pursuance  of  any 
Scheme and the employer’s contribution in pursuance of the Insurance Scheme)], and any charges  13*** 
for meeting the cost of administering the Fund paid or payable by an employer in respect of an employee 
employed by or through a contractor may be recovered by such employer from the contractor, either by 

1. Subs. by Act 37 of 1953, s. 6, for section 8. 
2. Subs. by Act 94 of 1956, s. 3, for “a factory”. 
3. Subs. by Act 99 of 1976, s. 24, for “Scheme” (w.e.f. 1-8-1976). 
4. Subs. by s. 24, ibid., for “the Fund” (w.e.f. 1-8-1976). 
5. Ins. by Act 28 of 1963, s. 7 (w.e.f. 30-11-1963). 
6. Subs. by Act 94 of 1956, s. 3, for “factory”. 
7. Subs. by Act 16 of 1971, s. 21, for “under section 17” (w.e.f. 23-4-1971). 
8. Subs. by Act 25 of 1996, s. 4, for “Family Pension” (w.e.f. 16-11-1995). 
9. Subs. by Act 40 of 1973, s. 2, for certain words (w.e.f. 1-11-1973). 
10. Subs. by Act 33 of 1988, s. 12, for certain words (w.e.f. 1-7-1990). 
11. Ins. by Act 28 of 1963, s. 8 (w.e.f. 30-11-1963). 
12. Subs. by Act 99 of 1976, s. 25, for certain words (w.e.f. 1-8-1976). 
13. The words “on the basis of such contribution” omitted by Act 33 of 1988, s. 13. (w.e.f. 1-8-1988). 

16 

 
                                                           
deduction  from  any  amount  payable  to  the  contractor,  under  any  contract  or  as  a  debt  payable  by  the 
contractor. 

(2) A contractor from whom the amounts mentioned in sub-section (1) may be recovered in respect of 
any  employee  employed  by  or  through  him,  may  recover  from  such  employee  the  employee’s 
contribution  1[under any Scheme] by deduction from the basic wages, dearness allowance and retaining 
allowance (if any) payable to such employee. 

(3)  Notwithstanding  any  contract  to  the  contrary,  no  contractor  shall  be  entitled  to  deduct  the 
employer’s  contribution  or  the  charges  referred  to  in  sub-section  (1)  from  the  basic  wages,  dearness 
allowance,  and  retaining  allowance  (if  any)  payable  to  an  employee  employed  by  or  through  him  or 
otherwise to recover such contribution or charges from such employee. 

Explanation.—In this section, the expressions, “dearness allowance” and “retaining allowance” shall 

have the same meanings as in section 6.] 

2[8B. Issue of certificate to the Recovery Officer.—(1) Where any amount is in arrear under section 
8, the authorised officer may issue, to the Recovery Officer, a certificate under his signature specifying 
the amount of arrears and the Recovery Officer, on receipt of such certificate, shall proceed to recover the 
amount specified therein from the establishment or, as the case may be, the employer by one or more of 
the modes mentioned below:— 

(a) attachment and sale of the movable or immovable property of the establishment or, as the case 

may be, the employer; 

(b) arrest of the employer and his detention in prison; 

(c)  appointing  a  receiver  for  the  management  of  the  movable  or  immovable  properties  of  the 

establishment or, as the case may be, the employer: 

Provided that the attachment and sale of any property under this section shall first be effected against 
the proportion of the establishment and where such attachment and sale is insufficient for recovering the 
whole  of  the  amount  of  arrears  specified  in  the  certificate,  the  Recovery  Officer  may  take  such 
proceedings against the property of the employer for recovery of the whole or any part of such arrears. 

(2)  The  authorised  officer  may  issue  a  certificate  under  sub-section  (1),  notwithstanding  that 

proceedings for recovery of the arrears by any other mode have been taken. 

8C.  Recovery  Officer  to  whom  certificate  is  to  be  forwarded.—(1)  The  authorised  officer  may 
forward  the  certificate  referred  to  in  section  8B  to  the  Recovery  Officer  within  whose  jurisdiction  the 
employer— 

(a)  carries  on  his  business  or  profession  or  within  whose  jurisdiction  the  principal  place  of  his 

establishment is situate; or  

(b) resides or any movable or immovable property of the establishment or the employer is situate. 

(2)  Where  an  establishment  or  the  employer  has  property  within  the  jurisdiction  of  more  than  one 

Recovery Officers and the Recovery Officer to whom a certificate is sent by the authorised officer— 

(a) is not able to recover the entire amount by the sale of the property, movable or immovable, 

within his jurisdiction; or 

(b) is of the opinion that, for the purpose of expediting or securing the recovery of the whole or 

any part of the amount, it is necessary so to do, 

1. Ins. by Act 99 of 1976, s. 25 (w.e.f. 1-8-1976). 
2. Ins. by Act 33 of 1988, s. 14 (w.e.f. 1-7-1990). 

17 

 
                                                           
he may send the certificate or, where only a part of the amount is to be recovered, a copy of the certificate 
certified  in  the  prescribed  manner  and  specifying  the  amount  to  be  recovered  to  the  Recovery  Officer 
within  whose  jurisdiction  the  establishment  or  the  employer  has  property  or  the  employer  resides,  and 
thereupon that Recovery Officer shall also proceed to recover the amount due under this section as if the 
certificate or the copy thereof had been the certificate sent to him by the authorised officer.  

8D.  Validity  of  certificate  and  amendment  thereof.—(1)  When  the  authorised  officer  issues  a 
certificate to a Recovery Officer under section 8B, it shall not be open to the employer to dispute before 
the  Recovery  Officer  the  correctness  of  the  amount,  and  no  objection  to  the  certificate  on  any  other 
ground shall also be entertained by the Recovery Officer. 

(2) Notwithstanding the issue of a certificate to a Recovery Officer, the authorised officer shall have 
power  to  withdraw  the  certificate  or  correct  any  clerical  or  arithmetical  mistake  in  the  certificate  by 
sending an intimation to the Recovery Officer. 

(3) The authorised officer shall intimate to the Recovery Officer any order withdrawing or cancelling 
a  certificate  or  any  correction  made  by  him  under  sub-section  (2)  or  any  amendment  made  under  
sub-section (4) of section 8E. 

8E.  Stay  of  proceedings  under  certificate  and  amendment  or  withdrawal  thereof.—(1) 
Notwithstanding that a certificate has been issued to the Recovery Officer for the recovery of any amount, 
the authorised officer may grant time for the payment of the amount, and thereupon the Recovery Officer 
shall stay the proceedings until the expiry of the time so granted. 

(2) Where a certificate for the recovery of amount has been issued, the authorised officer shall keep 
the Recovery Officer informed of any amount paid or time granted for payment, subsequent to the issue 
of such certificate. 

(3) Where the order giving rise to a demand of amount for which a certificate for recovery has been 
issued has been modified in appeal or other proceeding under this Act, and, as a consequence thereof, the 
demand  is  reduced  but  the  order  is  the  subject-matter  of  a  further  proceeding  under  this  Act,  the 
authorised officer shall stay the recovery of such part of the amount of the certificate as pertains to the 
said reduction for the period for which the appeal or other proceeding remains pending. 

(4) Where a certificate for the recovery of amount has been issued and subsequently the amount of the 
outstanding demand is reduced as a result of an appeal or other proceeding under this Act, the authorised 
officer shall, when the order which was the subject-matter of such appeal or other proceeding has become 
final and conclusive, amend the certificate or withdraw it, as the case may be. 

8F.  Other  modes  of  recovery.—(1)  Notwithstanding  the  issue  of  a  certificate  to  the  Recovery 
Officer under section 8B, the Central Provident Fund Commissioner or any other officer authorised by the 
Central Board may recover the amount by any one or more of the modes provided in this section. 

(2) If any amount is due from any person to any employer who is in arrears, the Central Provident 
Fund Commissioner or any other officer authorised by the Central Board in this behalf may require such 
person to deduct from the said amount the arrears due from such employer under this Act and such person 
shall  comply  with  any  such  requisition  and  shall  pay  the  sum  so  deducted  to  the  credit  of  the  Central 
Provident Fund Commissioner or the officer so authorised, as the case may be: 

Provided  that  nothing  in  this  sub-section  shall  apply  to  any  part  of  the  amount  exempt  from 
attachment in execution of a decree of a civil court under section 60 of the Code of Civil Procedure, 1908 
(5 of 1908). 

(3) (i) The Central Provident Fund Commissioner or any other officer authorised by the Central Board 
in this behalf may, at any time or from time to time, by notice in writing, require any person from whom 
money is due or may become due to the employer or, as the case may be, the establishment or any person 
who holds or may subsequently hold money for or on account of the employer or as the case may be, the 

18 

 
establishment,  to  pay  to  the  Central  Provident  Fund  Commissioner  either  forthwith  upon  the  money 
becoming due or being held or at or within the time specified in the notice (not being before the money 
becomes due or is held) so much of the money as is sufficient to pay the amount due from the employer in 
respect of arrears or the whole of the money when it is equal to or less than that amount. 

(ii) A notice under this sub-section may be issued to any person who holds or may subsequently hold 
any money for or an account of the employer jointly with any other person and for the purposes of this 
sub-section, the shares of the joint-holders in such account shall be presumed, until the contrary is proved, 
to be equal. 

(iii) A copy of the notice shall be forwarded to the employer at his last address known to the Central 
Provident Fund Commissioner or, as the case may be, the officer so authorised and in the case of a joint 
account to all the joint-holders at their last addresses known to the Central Provident Fund Commissioner 
or the officer so authorised. 

(iv) Save as otherwise provided in this sub-section, every person to whom a notice is issued under this 
sub-section shall be bound to comply with such notice, and, in particular, where any such notice is issued 
to a post office, bank or an insurer, it shall not be necessary for any pass book, deposit receipt, policy or 
any  other  document  to  be  produced  for  the  purpose  of  any  entry,  endorsement  or  the  like  being  made 
before payment is made notwithstanding any rule, practice or requirement to the contrary. 

(v) Any claim respecting any property in relation to which a notice under this sub-section has been 

issued arising after the date of the notice shall be void as against any demand contained in the notice. 

(vi) Where a person to whom a notice under this sub-section is sent objects to it by a statement on 
oath that the sum demanded or any part thereof is not due to the employer or that he does not hold any 
money for or on account of the employer, then, nothing contained in this sub-section shall be deemed to 
require such person to pay any such sum or part thereof, as the case may be, but if it is discovered that 
such statement was false in any material particular, such person shall be personally liable to the Central 
Provident  Fund  Commissioner  or  the  officer  so  authorised  to  the  extent  of  his  own  liability  to  the 
employer on the date of the notice, or to the extent of the employer’s liability for any sum due under this 
Act, whichever is less. 

(vii) The Central Provident Fund Commissioner or the officer so authorisedmay, at any time or from 
time to time, amend or revoke any notice issued under this sub-section or extend the time for making any 
payment in pursuance of such notice. 

(viii) The Central Provident Fund Commissioner or the officer so authorised shall grant a receipt for 
any amount paid in compliance with a notice issued under this sub-section, and the person so paying shall 
be fully discharged from his liability to the employer to the extent of the amount so paid. 

(ix)  Any  person  discharging  any  liability  to  the  employer  after  the  receipt  of  a  notice  under  this  
sub-section  shall  be  personally  liable  to  the  Central  Provident  Fund  Commissioner  or  the  officer  so 
authorised  to  the  extent  of  his  own  liability  to  the  employer  so  discharged  or  to  the  extent  of  the 
employer’s liability for any sum due under this Act, whichever is less. 

(x) If the person to whom a notice under this sub-section is sent fails to make payment in pursuance 
thereof to the Central Provident Fund Commissioner or the officer so authorised he shall be deemed to be 
an employer in default in respect of the amount specified in the notice and further proceedings may be 
taken against him for the realisation of the amount as if it were an arrear due from him, in the manner 
provided in sections 8B to 8E and the notice shall have the same effect as an attachment of a debt by the 
Recovery Officer in exercise of his powers under section 8B. 

(4) The Central Provident Fund Commissioner or the officer authorised by the Central Board in this 
behalf may apply to the court in whose custody there is money belonging to the employer for payment to 
him  of  the entire  amount of  such  money,  or  if  it  is more  than the amount  due,  an  amount  sufficient  to 
discharge the amount due. 

(5)  The  Central  Provident  Fund  Commissioner  or  any  officer  not  below  the  rank  of  Assistant 
Provident  Fund  Commissioner  may,  if  so  authorised  by  the  Central  Government  by  general  or  special 
order, recover any arrears of amount due from an employer or, as the case may be, from the establishment 

19 

 
by distraint and sale of his or its movable property in the manner laid down in the Third Schedule to the 
Income- tax Act, 1961 (43 of 1961). 

8G. Application of certain provisions of Income-tax Act.—The provisions of the Second and Third 
Schedules to the Income-tax Act, 1961 (43 of 1961) and the Income-tax (Certificate Proceedings) Rules, 
1962, as in force from time to time, shall apply with necessary modifications as if the said provisions and 
the  rules  referred  to  the  arrears  of  the  amount  mentioned  in  section  8  of  this  Act  instead  of  to  the  
income-tax: 

Provided that any reference in the said provisions and the rules to the “assessee” shall be construed as 

a reference to an employer as defined in this Act.] 

9. Fund to be recognised under Act 11 of 1922.—For the purposes of the Indian Income-tax Act, 
1922, the Fund shall be deemed to be a recognised provident fund within the meaning of Chapter IXA of 
that Act: 

1[Provided that nothing contained in the said Chapter shall operate to render ineffective any provision 
of the Scheme (under which the Fund is established) which is repugnant to any of the provisions of that 
Chapter or of the rules made thereunder.] 

10.  Protection  against  attachment.—(1)  The  amount  standing  to  the  credit  of  any  member  in  the 
Fund  2[or  of  any  exempted  employee  in  a  provident  fund]  shall  not  in  any  way  be  capable  of  being 
assigned or charged and shall not be liable to attachment under any decree or order of any court in respect 
of  any  debt  or  liability  incurred  by  the  member  2[or  the  exempted  employee],  and  neither  the  official 
assignee  appointed  under  the  Presidency-towns  Insolvency  Act,  1909  (3  of  1909),  nor  any  receiver 
appointed under the Provincial Insolvency Act, 1920 (5 of 1920), shall be entitled to, or have any claim 
on, any such amount. 

3[(2) Any amount standing to the credit of a member in the Fund or of an exempted employee in a 
provident fund at the time of his death and payable to his nominee under the Scheme or the rules of the 
provident fund shall, subject to any deduction authorised by the said Scheme or rules, vest in the nominee 
and shall be free from any debt or other liability incurred by the deceased or the nominee before the death 
of the member of the exempted employee 4[and shall also not be liable to attachment under any decree or 
order of any court]. 

5[(3) The provisions of sub-section (1) and sub-section (2) shall, so far as may be, apply in relation to 
the family pension or any other amount payable under the 6[Pension] Scheme 7[and also in relation to any 
amount payable under the Insurance Scheme] as they apply in relation to any amount payable out of the 
Fund.] 

11.  Priority  of  payment  of  contributions  over  other  debts.—8[(1)]  9[Where  any  employer  is 

adjudicated insolvent or, being a company, an order for winding up is made, the amount due— 

(a) from the employer in relation to 10[an establishment] to which any 11[Scheme or the Insurance 
Scheme]  applies  in  respect  of  any  contribution  payable  to  the  Fund  12[or,  as  the  case  may  be,  the 
Insurance  Fund],  damages  recoverable  under  section  14B,  accumulations  required  to  be  transferred 

1. Ins. by Act 37 of 1953, s. 7. 
2. Ins. by s. 8, ibid. 
3. Subs. by s. 8, ibid., for sub-section (2). 
4. Added by Act 33 of 1988, s. 15 (w.e.f. 1-8-1988). 
5. Ins. by Act 16 of 1971, s. 22 (w.e.f. 23-4-1971). 
6. Subs. by Act 25 of 1996, s. 4, for “Family Pension” (w.e.f.16-11-1995). 
7. Ins. by Act 99 of 1976, s. 26 (w.e.f. 1-8-1976). 
8. Section 11 re-numbered as sub-section (1) of that section by Act 40 of 1973, s. 3 (w.e.f. 1-11-1973). 
9. Subs. by Act 37 of 1953, s. 9, for certain words. 
10. Subs. by Act 94 of 1956, s. 3, for “a factory”. 
11. Subs. by Act 99 of 1976, s. 27, for “Scheme” (w.e.f. 1-8-1976). 
12. Ins. by s. 27, ibid. (w.e.f. 1-8-1976). 

20 

 
                                                           
under sub-section (2) of section 15 or any charges payable by him under any other provision of this 
Act or of any provision of the 1[Scheme or the Insurance Scheme]; or 

(b) from the employer in relation to an exempted  2[establishment] in respect of any contribution 
to 3[the Provident Fund or any Insurance Fund] (in so far it relates to exempted employees), under the 
rules of 3[the Provident Fund or any Insurance Fund], 4[any contribution payable by him towards the 
Family Pension Fund under sub-section (6) of section 17,] damages recoverable under section 14B or 
any charges payable by him to the appropriate Government under any provision of this Act or under 
any of the conditions specified under section 17. 

shall, where the liability thereof has accrued before the order of adjudication or winding up is made, be 
deemed to be included] among the debts which under section 49 of the Presidency-towns Insolvency Act, 
1909  (3  of  1909),  or  under  section  61  of  the  Provincial  Insolvency  Act,  1920  (5  of  1920),  or  under 
5[section 530 of the Companies Act, 1956 (1 of 1956)], are to be paid in priority to all other debts in the 
distribution of the property of the insolvent or the assets of the company being wound up, as the case may 
be. 

6[Explanation.—In this sub-section and in section 17, “insurance fund” means any fund established 
by  an  employer  under  any  scheme  for  providing  benefits  in  the  nature  of  life  insurance  to  employees, 
whether  linked  to  their  deposits  in  provident  fund  or  not,  without  payment  by  the  employees  of  any 
separate contribution or premium in that behalf.] 

7[(2) Without prejudice to the provisions of sub-section (1), if any amount is due from an employer 
8[whether  in  respect  of  the  employee’s  contribution  (deducted  from  the  wages  of  the  employee)  or  the 
employer’s contribution], the amount so due shall be deemed to be the first charge on the assets of the 
establishment, and shall, notwithstanding anything contained in any other law for the time being in force, 
be paid in priority to all other debts.] 

9[12. Employer not to reduce wages, etc.—No employer in relation to 10[an establishment] to which 
any  11[Scheme or the Insurance Scheme] applies shall, by reason only of his liability for the payment of 
any contribution to 12[the Fund or the Insurance Fund] or any charges under this Act or the 11[Scheme or 
the Insurance Scheme], reduce, whether directly or indirectly, the wages of any employee to whom the 
11[Scheme  or  the  Insurance  Scheme]  applies  or  the  total  quantum  of  benefits  in  the  nature  of  old  age 
pension, gratuity  13[Provident Fund or Life Insurance] to which the employee is entitled under the terms 
of his employment, express or implied.] 

13.  Inspectors.—(1)  The  appropriate  Government  may,  by  notification  in  the  Official  Gazette, 
appoint such persons as it thinks fit to be Inspectors for the purposes of this Act 14[, the Scheme] 15[, the 
16[Pension] Scheme or the Insurance Scheme], and may define their jurisdiction. 

1. Subs. by Act 99 of 1976, s. 27, for “Scheme” (w.e.f. 1-8-1976). 
2. Subs. by Act 94 of 1956, s. 3, for “Factory” 
3. Subs. by Act 99 of 1976, s. 27, for “the provident fund” (w.e.f. 1-8-1976). 
4. Ins. by Act 16 of 1971, s. 23 (w.e.f. 23-4-1971). 
5. Subs. by Act 40 of 1973, s. 3, for certain words (w.e.f. 1-11-1973). 
6. Ins. by Act 99 of 1976, s. 27 (w.e.f. 1-8-1976). 
7. Ins. by Act 40 of 1973, s. 3 (w.e.f. 1-11-1973). 
8. Subs. by Act 33 of 1988, s. 16, for certain words (w.e.f. 1-8-1988). 
9. Subs. by Act 37 of 1953, s. 10, for section 12. 
10. Subs. by Act 94 of 1956, s. 3, for “a factory”. 
11. Subs. by Act 99 of 1976, s. 28, for “Scheme” (w.e.f. 1-8-1976). 
12 Subs. by s. 28, ibid., for “the Fund” (w.e.f. 1-8-1976). 
13. Subs. by s. 28, ibid., “or provident Fund” (w.e.f. 1-8-1976). 
14. Subs. by Act 16 of 1971, s. 24, for “or of any Scheme” (w.e.f. 23-4-1971). 
15. Subs. by Act 90 of 1976, s. 29, for “or the Family Pension Scheme” (w.e.f. 1-8-1976). 
16. Subs. by Act 25 of 1996, s. 4, for “Family Pension” (w.e.f. 16-11-1995). 

21 

 
                                                           
(2)  Any  Inspector  appointed  under  sub-section  (1)  may,  for  the  purpose  of  inquiring  into  the 
correctness  of  any  information  furnished  in  connection  with  this  Act  or  with  any  1[Scheme  or  the 
Insurance Scheme] or for the purpose of ascertaining whether any of the provisions of this Act or of any 
1[Scheme or the Insurance Scheme] have been complied with 2[in respect of  3[an establishment] to which 
any 1[Scheme or the Insurance Scheme] applies or for the purpose of ascertaining whether the provisions 
of this Act or any 1[Scheme or the Insurance Scheme] are applicable to any 4[establishment] to which the 
1[Scheme or the Insurance Scheme] has not been applied or for the purpose of determining whether the 
conditions  subject  to  which  exemption  was  granted  under  section  17  are  being  complied  with  by  the 
employer in relation to an exempted 4[establishment]]— 

(a) require an employer 5[or any contractor from whom any amount is recoverable under section 

8A] to furnish such information as he may consider necessary 6***; 

(b) at any reasonable time 7[and with such assistance, if any, as he may think fit, enter and search] 
any 4[establishment] or any premises connected therewith and require any one found in charge thereof 
to produce before him for examination any accounts, books, registers and other documents relating to 
the employment of persons or the payment of wages in the 4[establishment]; 

(c) examine, with respect to any matter relevant to any of the purposes aforesaid, the employer 
5[or any contractor from whom any amount is recoverable under section 8A], his agent or servant or 
any  other  person  found  in  charge  of  the  4[establishment]  of  any  premises  connected  therewith  or 
whom  the  Inspector  has  reasonable  cause  to  believe  to  be  or  to  have  been,  an  employee  in  the 
4[establishment]; 

8[(d) make copies of, or take extracts from, any book, register or other document maintained in 
relation to the establishment and, where he has reason to believe that any offence under this Act has 
been committed by an employer, seize with such assistance as he may think fit, such book, register or 
other document or portions thereof as he may consider relevant in respect of that offence;] 

(e) exercise such other powers as the 1[Scheme or the Insurance Scheme] may provide. 

9[(2A)  Any  Inspector  appointed  under  sub-section  (1)  may,  for  the  purpose  of  inquiring  into  the 
correctness of any information furnished in connection with the 10[Pension] Scheme or for the purpose of 
ascertaining whether any of the provisions of this Act or of the  10[Pension] Scheme have been complied 
with in  respect  of  an establishment  to  which the  10[Pension]  Scheme  applies, exercise all  or  any  of  the 
powers conferred, on him under clause (a), clause (b), clause (c) or clause (d) of sub-section (2).] 

5[11[(2B)] The provisions of the Code of Criminal Procedure, 1898 (5 of 1898) shall, so far as may be, 
apply to any search or seizure under sub-section (2), 12[or under sub-section (2A), as the case may be,] as 
they apply to any search or seizure made under the authority of a warrant issued under section 98 of the 
said Code (45 of 1960).] 

13*   

*  

*  

* 

 * 

1. Subs. by Act 99 of 1976, s. 29, for “Scheme” (w.e.f. 1-8-1976). 
2. Ins. by Act 37 of 1953, s. 11. 
3. Subs b Act 94 of 1956, s. 3, for “a factory”. 
4. Subs. by s. 3, ibid., for “factory” 
5. Ins. by Act 28 of 1963, s. 9 (w.e.f. 30-11-1963). 
6. The words “in relation to the Scheme” omitted by Act 37 of 1953, s. 11. 
7. Subs. by Act 28 of 1963, s. 9, for “enter” (w.e.f. 30-11-1963). 
8. Subs. by s. 9, ibid., for clause (d) (w.e.f. 30-11-1963). 
9. Ins. by Act 16 of 1971, s. 24. 
10. Subs. by Act 25 of 1996, s. 4, for “Family Pension” (w.e.f. 16-11-1995). 
11. Sub-section (2A) re-numbered as sub-section (2B) by s. 24, ibid. (w.e.f. 23-4-1971). 
12. Ins. by s. 24, ibid. (w.e.f. 23-4-1971). 
13. Omitted by Act 33 of 1988, s. 17 (w.e.f. 1-8-1988). 

22 

 
 
 
 
 
 
 
 
                                                           
14. Penalties.—(1) Whoever, for the purpose of avoiding any payment to be made by himself under 
this  Act  1[,  the  Scheme  2[,  the  3[Pension]  Scheme  or  the  Insurance  Scheme]]  or  of  enabling  any  other 
person  to  avoid  such  payment,  knowingly  makes  or  causes  to  be  made  any  false  statement  or  false 
representation shall be punishable with imprisonment for a term which may extend to 4[one year, or with 
fine of five thousand rupees, or with both.] 

5[(1A) An employer who contravenes, or makes default in complying with, the provisions of section 6 
or clause (a) of sub-section (3) of section 17 in so far as it relates to the payment of inspection charges, or 
paragraph  38  of  the  Scheme  in  so  far  as  it  relates  to  the  payment  of  administrative  charges,  shall  be 
punishable with imprisonment for a term which may extend to 6[three years] but— 

(a)which shall not be less than 7[one year and a fine of ten thousand rupees] in case of default in 
payment  of  the  employees’  contribution  which  has  been  deducted  by  the  employer  from  the 
employees’ wages; 

8[(b)  which  shall  not  be  less  than  six  months  and  a  fine  of  five  thousand  rupees,  in  any  other 

case;] 

9* 

 * 

 *  

* 

 * 

Provided  that  the  court  may,  for  any  adequate  and  special  reasons  to  be  recorded  in  the  judgment, 

impose a sentence of imprisonment for a lesser term 10***.] 

11[(1B) An employer who contravenes, or makes default in complying with, the provisions of section 
6C,  or  clause  (a)  of  sub-section  (3A)  of  section  17  in  so  far  as  it  relates  to  the  payment  of  inspection 
charges, shall be punishable with imprisonment for a term which may extend to  12[one year] but which 
shall not be less than 13[six months] and shall also be liable to fine which may extend to 14[five thousand 
rupees]: 

Provided  that  the  court  may,  for  any  adequate  and  special  reasons  to  be  recorded  in  the  judgment, 

impose a sentence of imprisonment for a lesser term 15***. 

(2)  16[Subject to the provisions of this Act, the Scheme]  17[, the  3[Pension Scheme or the Insurance 
Scheme] may provide that any person who contravenes, or makes default in complying with, any of the 
provisions thereof shall be punishable with imprisonment for a term which may extend 4[one year, or with 
fine which may extend to four thousand rupees, or with both]. 

18[(2A) Whoever contravenes or makes default in complying with any provision of this Act or of any 
condition subject to which exemption was granted under section 17 shall, if no other penalty is elsewhere 

1. Subs. by Act 16 of 1971, s. 25, for “or under any Scheme”. 
2. Subs. by Act 99 of 1976, s. 30, for “or the Family Pension Scheme” (w.e.f. 7-9-1976). 
3. Subs. by Act 25 of 1996, s. 4, for “Family Pension” (w.e.f. 16-11-1995). 
4.  Subs.  by  Act  33  of  1988,  s.  18,  for  “six  months,  or  with  fine  which  may  extend  to  one  thousand  rupees,  or  with  both” 

 (w.e.f. 1-8-1988). 

5. Ins. by Act 40 of 1973, s. 4 (w.e.f. 1-11-1973). 
6. Subs. by Act 33 of 1988, s. 18, for “six months” (w.e.f. 1-8-1988). 
7. Subs. by s. 18, ibid., for “three months” (w.e.f. 1-8-1988). 
8. Subs. by Act 33 of 1988,s. 18 (w.e.f. 1-8-1988). 
9. The words “and shall also be liable to fine which may extend to two thousand rupees” omitted by s. 18, ibid. (w.e.f. 1-8-1988). 
10. The words “or of fine only in lieu of imprisonment” omitted by s. 18, ibid. (w.e.f. 1-8-1988). 
11. Ins. by Act 99 of 1976, s. 30 (w.e.f. 7-9-1976). 
12. Subs. by Act 33 of 1988, s. 18, for “six months” (w.e.f. 1-8-1988). 
13. Subs. by s. 18, ibid., for “one month” (w.e.f. 1-8-1988). 
14. Subs. by s. 18, ibid., for “two thousand rupees” (w.e.f. 1-8-1988). 
15. The words “or of fine only in lieu of imprisonment” omitted by s. 18, ibid. (w.e.f. 1-8-1988). 
16. Subs. by Act 40 of 1973, s. 4, for “the scheme” (w.e.f. 1-11-1973). 
17. Subs. by Act 99 of 1976, s. 30, “or the family pension” (w.e.f. 7-9-1976). 
18. Ins. by Act 37 of 1953, s. 12. 

23 

 
 
 
 
 
 
 
 
 
                                                           
provided  by  or  under  this  Act  for  such  contravention  or  non-compliance,  be  punishable  with 
imprisonment which may extend to  1[six months, but which shall not be less than one month, and shall 
also be liable to fine which may extend to five thousand rupees.] 

2* 

*  

* 

 * 

* 

3[14A.  Offences  by  companies.—(1)  If  the  person  committing  an  offence  under  this  Act  4[,  the 
Scheme  or  5[the  6[Pension]  Scheme  or  the  Insurance  Scheme]]  is  a  company,  every  person,  who  at the 
time the offence was committed was in charge of, and was responsible to, the company for the conduct of 
the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall 
be liable to be proceeded against and punished accordingly: 

Provided  that  nothing  contained  in  this  sub-section  shall  render  any  such  person  liable  to  any 
punishment, if he proves that the offence was committed without his knowledge or that he exercised all 
due diligence to prevent the commission of such offence. 

(2)  Notwithstanding  anything  contained  in  sub-section  (1),  where  an  offence  under  this  Act  4[,  the 
Scheme or 5[the 6[Pension] Scheme or the Insurance Scheme]] has been committed by a company and it is 
proved that the offence has been committed with the consent or connivance of, or is attributable to, any 
neglect on the part of, any director or manager, secretary or other officer of the company, such director, 
manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be 
proceeded against and punished accordingly. 

Explanation.—Forthe purposes of this section,— 

(a)  “company”  means  any  body  corporate  and  includes  a  firm  and  other  association  of 

individuals; and 

(b) “director” in relation to a firm, means a partner in the firm. 

7[14AA.  Enhanced  punishment  in  certain  cases  after  previous  conviction.—Whoever,  having 
been  convicted  by  a  Court  of  an  offence  punishable  under  this  Act,  the  Scheme  or  5[the  6[Pension] 
Scheme or the Insurance Scheme], commits the same offence shall be subject for every such subsequent 
offence to imprisonment for a term which may extend to 8[five years, but which shall not be less than two 
years, and shall also be liable to a fine of twenty-five thousand rupees]. 

14AB.  Certain  offences  to  be  cognizable.—Notwithstanding  anything  contained  in  the  Code  of 
Criminal  Procedure,  1898 (5  of  1898.)  an  offence relating  to  default in payment  of  contribution  by  the 
employer punishable under this Act shall be cognizable. 

14AC.  Cognizance  and  trial  of  offences.—(1)  No  court  shall  take  cognizance  of  any  offence 
punishable under this Act, the Scheme or 5[the 6[Pension] Scheme or the Insurance Scheme] except on a 
report  in  writing  of  the  facts  constituting  such  offence  made  with  the  previous  sanction  of  the  Central 
Provident Fund Commissioner or such other officer as may be authorised by the Central Government, by 
notification in the Official Gazette, in this behalf, by an Inspector appointed under section 13. 

1.  Subs.  by  Act  33  of  1988,  s.  18,  for  “six  months,  or  with  fine  which  may  extend  to  one  thousand  rupees,  or  with  both” 

 (w.e.f. 1-8-1988). 

2. Omitted by Act 40 of 1973, s. 4 (w.e.f. 1-11-1973). 
3. Ins. by Act 37 of 1953, s. 13. 
4. Subs. by Act 16 of 1971, s. 26, for “or the scheme made thereunder”. 
5. Subs. by Act 99 of 1976, s. 31, for “the family pension scheme” (w.e.f. 7-9-1976). 
6. Subs. by Act 25 of 1996, s. 4, for “Family Pension” (w.e.f. 16-11-1995). 
7. Ins. by Act 40 of 1973, s. 5. 
8. Subs. by  Act 33 of 1988, s. 19, for “one year but which shall not be less than three months and shall also be liable to fine 

which may extend to four thousand rupees” (w.e.f. 1-8-1988). 

24 

 
 
 
 
 
 
 
 
 
                                                           
(2) No court inferior to that of a Presidency Magistrate or a Magistrate of the first class shall try any 

offence under this Act or the Scheme or 1[the 2[Pension] Scheme or the Insurance Scheme]. 

14B.  Power  to  recover  damages.—Where  an  employer  makes  default  in  the  payment  of  any 
contribution to the Fund 3[, the 2[Pension] Fund or the Insurance Fund] or in the transfer of accumulations 
required to be transferred by him under sub-section (2) of section 15 4[or sub-section (5) of section 17] or 
in  the  payment  of  any  charges  payable  under  any  other  provision  of  this  Act  or  of  5[any  Scheme  or 
Insurance  Scheme]  or  under  any  of  the  conditions  specified  under  section  17,  6[the  Central  Provident 
Fund  Commissioner  or  such  other  officer  as  may  be  authorised  by  the  Central  Government,  by 
notification  in  the  Official Gazette, in this  behalf]  may  recover  7[from  the  employer  by  way  of  penalty 
such damages, not exceedingthe amount of arrears, as may be specified in the Scheme:] 

8[Provided that before levying and recovering such damages, the employer shall be given a reasonable 

opportunity of being heard]: 

9[Provided further that the Central Board may reduce or waive the damages levied under this section 
in relation to an establishment which is a sick industrial company and in respect of which a scheme for 
rehabilitation  has  been  sanctioned  by  the  Board  for  Industrial  and  Financial  Reconstruction  established 
under section 4 of the Sick Industrial Companies (Special Provisions) Act, 1985,subject to such terms and 
conditions as may be specified in the Scheme.] 

10[14C.  Power  of  court  to  make  orders.—(1)  Where  an  employer  is  convicted  of  an  offence  of 
making  default  in  the  payment  of  any  contribution  to  the  Fund  11[,the  2[Pension]Fund  or  the  Insurance 
Fund]]  or  in  the  transfer  of  accumulations  required  to  be  transferred  by  him  under  sub-section  (2)  of 
section  15  or  sub-section  (5)  of  section  17,  the  court  may,  in  addition to awarding  any  punishment, by 
order in writing require him within a period specified in the order (which the court may, if it thinks fit and 
on application in that behalf, from time to time, extend), to pay the amount of contribution or transfer the 
accumulations, as the case may be, in respect of which the offence was committed. 

(2) Where an order is made under sub-section (1), the employer shall not be liable under this Act in 
respect  of  the  continuation  of  the  offence  during  the  period  or  extended  period,  if  any,  allowed  by  the 
court, but if, on the expiry of such period or extended period, as the case may be, the order of the court 
has not been fully complied with, the employer shall be deemed to have committed a further offence and 
shall be punished with imprisonment in respect thereof under section 14 and shall also be liable to pay 
fine which may extend to one hundred rupees for every day after such expiry on which the order has not 
been complied with.] 

15.  Special  provisions  relating  to  existing  provident  funds.—(1)  12[Subject  to  the  provisions  of 
section 17, every employee who is a subscriber to any provident fund of 13[an establishment] to which this  

1. Subs. by Act 99 of 1976, s. 31, for “the family pension scheme” (w.e.f. 7-9-1976). 
2. Subs. by Act 25 of 1996, s. 4, for “Family Pension” (w.e.f. 16-11-1995). 
3. Subs. by Act 99 of 1976, s. 32, for “or the family pension fund” (w.e.f. 1-8-1976). 
4. Ins. by Act 28 of 1963, s. 10 (w.e.f. 30-11-1963). 
5. Subs. by Act 99 of 1976, s. 32, for “any scheme” (w.e.f. 1-8-1976). 
6. Subs. by Act 40 of 1973, s. 6, for “the appropriate Government” (w.e.f. 1-11-1973). 
7. Subs. by Act 33 of 1988, s. 20, for “from the employer such damages, not exceeding the amount of arrears as it may think fit to 

impose” (w.e.f. 1-9-1991). 

8. Ins. by Act 40 of 1973, s. 6 (w.e.f. 1-11-1973). 
9. Ins. by Act 33 of 1988, s. 20 (to be notified). 
10. Ins. by Act 40 of 1973, s. 7 (w.e.f. 1-11-1973). 
11. Subs. by Act 99 of 1976, s. 33, for “or the Family Pension Fund” (w.e.f. 1-8-1976). 
12. Subs. by Act 37 of 1953, s. 14, for certain words. 
13. Subs. by Act 94 of 1956, s. 3, for “a factory”. 

25 

 
 
                                                           
act applies shall, pending the application of a Scheme to] the  1[establishment] in which he is employed, 
continue to be entitled to the benefits accruing to him under the provident  fund, and the provident fund 
shall continue to be maintained in the same manner and subject to the same conditions as it would have 
been if this Act had not been passed. 

(2)  2[On  the  application  of  any  Scheme  to  3[an  establishment],  the  accumulations  in  any  provident 
fund of the  1[establishment] standing to the credit of the employees who become members of the Fund 
established under the Scheme] shall, notwithstanding anything to the contrary contained in any law for the 
time being in force or in any deed or other instrument establishing the provident fund but subject to the 
provisions, if any, contained in the Scheme, be transferred to the Fund established under the Scheme, and 
shall be credited to the accounts of the employees entitled thereto in the Fund. 

16. Act not to apply to certain establishments.—4[(1) This Act shall not apply— 

(a)  to  any  establishment  registered  under  the  Co-operative  Societies  Act,  1912  (2  of  1912),  or 
under  any  other  law  for  the  time  being  in  force  in  any  State  relating  to  co-operative  societies, 
employing less than fifty persons and working without the aid of power; or 

5[(b) to any other establishment belonging to or under the control of the Central Government or a 
State Government and whose employees are entitled to the benefit of contributory provident fund or 
old  age  pension  in  accordance  with  any  scheme  or  rule  framed  by  the  Central  Government  or  the 
State Government governing such benefits; or 

(c)  to  any  other  establishment  set  up  under  any  Central,  Provincial  or  State  Act  and  whose 
employees are entitled to the benefits of contributory provident fund or old age pension in accordance 
with any scheme or rule framed under that Act governing such benefits; 6*** 

7* 

* 

* 

* 

* 

8[(2) If the Central Government is of opinion that having regard to the financial position of any class 
of  9[establishments] or other circumstances of the case, it is necessary or expedient so to do, it may, by 
notification in the Official Gazette, and subject to such conditions as may be specified in the notification, 
exempt  10[whether prospectively or retrospectively] that class of  9[establishments] from the operation of 
this Act for such period as may be specified in the notification.] 

11[16A.  Authorising  certain  employers  to  maintain  provident  fund  accounts.—(1)  The  Central 
Government  may,  on  an  application  made  to  it  in  this  behalf  by  the  employer  and  the  majority  of 
employees  in  relation  to  an  establishment  employing  one  hundred  or  more  persons,  authorise  the 
employer, by an order in writing, to maintain a provident fund account in relation to the establishment, 
subject to such terms and conditions as may be specified in the Scheme: 

Provided  that  no  authorisation  shall  be  made  under  this  sub-section  if  the  employer  of  such 
establishment had committed any default in the payment of provident fund contribution or had committed 
any  other  offence  under  this  Act  during  the  three  years  immediately  preceding  the  date  of  such 
authorisation. 

1. Subs. by Act 94 of 1956, s. 3, for “factory”. 
2. Subs. by Act 37 of 1953, s. 14, for certain words. 
3. Subs. by Act 94 of 1956, s. 3, for “a factory”. 
4. Subs. by Act 46 of 1960, s. 5, for sub-section (1) (w.e.f. 31-12-1960). 
5. Subs. by Act 33 of 1988, s. 21, for clause (b) (w.e.f. 1-8-1988). 
6. The word “or” omitted by Act 10 of 1998, s. 5 (w.e.f. 22-9-1997). 
7. Omitted by s. 5, ibid. (w.e.f. 22-9-1997). 
8. Ins. by Act 37 of 1953, s. 15. 
9. Subs. by Act 94 of 1956, s. 3, for “factories”. 
10. Ins. by Act 33 of 1988, s. 21 (w.e.f. 1-8-1988). 
11.Section 16 A shall stand ins (date to be notified) by s. 22, ibid. 

26 

 
 
 
 
 
 
 
 
                                                           
(2) Where an establishment is authorised to maintain a provident fund account under sub-section (1), 
the employer in relation to such establishment shall maintain such account, submit such return, deposit 
the  contribution  in  such  manner,  provide  for  such  facilities  for  inspection,  pay  such  administrative 
charges, and abide by such other terms and conditions, as may be specified in the Scheme. 

(3) Any authorisation made under this section may be cancelled by the Central Government by order 
in  writing  if  the  employer  fails  to  comply  with  any  of  the  terms  and  conditions  of  the  authorisation  or 
where he commits any offence under any provision of this Act: 

Provided that before cancelling the authorisation, the Central Government shall give the employer a 

reasonable opportunity of being heard.] 

1[17.  Power  to  exempt.—(1)  The  appropriate  Government  may,  by  notification  in  the  Official 
Gazette  and  subject  to  such  conditions  as  may  be  specified  in  the  notification,  2[exempt,  whether 
prospectively or retrospectively, from the operation] of all or any of the provisions of any Scheme— 

(a)  any  3[establishment]  to  which  this  Act  applies  if,  in  the  opinion  of  the  appropriate 
Government,  the  rules  of  its  provident  fund  with  respect  to  the  rates  of  contribution  are  not  less 
favourable  than  those  specified  in  section  6  and  the  employees  are  also  in  enjoyment  of  other 
provident fund benefits which on the whole are not less favourable to the employees than the benefits 
provided under this Act or any Scheme in relation to the employees in any other 3[establishment] of a 
similar character; or 

(b) and 3[establishment] if the employees of such 3[establishment] are in enjoyment of benefits in 
the  nature  of  provident  fund,  pension  or  gratuity  and  the  appropriate  Government  is  of  opinion  that 
such benefits, separately or jointly, are on the whole not less favourable to such employees than the 
benefits provided under this Act or any Scheme in relation to employees in any other 3[establishment] 
of a similar character: 

4[Provided  that  no  such  exemption  shall  be  made  except  after  consultation  with  the  Central  Board 
which on such consultation shall forward its views on exemption to the appropriate Government within 
such time limit as may be specified in the Scheme.]  

5* 

 * 

 * 

 * 

 *  

6[(1A)  Where  an  exemption  has  been  granted  to  an  establishment  under  clause  (a)  of  sub-section 

(1),— 

(a) the provisions of sections 6, 7A, 8 and 14B shall, so far as may be, apply to the employer of 
the  exempted  establishment  in  addition  to  such  other  conditions  as  may  be  specified  in  the 
notification  granting  such  exemption,  and  where  such  employer  contravenes,  or  makes  default  in 
complying with any of the said provisions or conditions or any other provisions of this Act, he shall 
be  punishable  under  section  14  as  if  the  said  establishment  had  not  been  exempted  under  the  said 
clause (a); 

(b) the employer shall establish a Board of Trustees for the administration of the provident fund 

consisting of such number of members as may be specified in the Scheme; 

(c) the terms and conditions of service of members of the Board of Trustees shall be such as may 

be specified in the Scheme; 

1. Subs. by Act 37 of 1953, s. 16, for section 17. 
2. Subs. by Act 33 of 1988, s. 23, for certain words (w.e.f. 1-10-1988). 
3. Subs. by Act 94 of 1956, s. 3, for “factory”. 
4. Added by Act 33 of 1988, s. 23 (w.e.f. 1-10-1988). 
5. The Explanation omitted by Act 28 of 1963, s. 11 (w.e.f. 30-11-1963). 
6. Subs. by Act 33 of 1988, s. 23, for sub-section (IA) (w.e.f. 1-10-1988). 

27 

 
 
 
 
 
 
 
 
 
                                                           
(d) the Board of Trustees constituted under clause (b) shall— 

(i)  maintain  detailed  accounts  to  show  the  contributions  credited,  withdrawals  made  and 

interest accrued in respect of each employee;  

(ii) submit such returns to the Regional Provident Fund Commissioner or any other officer as 

the Central Government may direct from time to time; 

(iii) invest the provident fund monies in accordance with the directions issued by the Central 

Government from time to time; 

(iv) transfer, where necessary, the provident fund account of any employee; and 

(v) perform such other duties as may be specified in the Scheme. 

(1B)  Where  the  Board  of  Trustees  established  under  clause  (b)  of  sub-section  (1A)  contravenes,  or 
makes default in complying with, any provisions of clause (d) of that sub-section, the Trustees of the said 
Board shall be deemed to have committed an offence under sub-section (2A) of section 14 and shall be 
punishable with the penalties provided in that sub-section. 

1[(1C)The  appropriate  Government  may,  by  notification  in  the  Official  Gazette,  and  subject  to  the 
condition  on  the  pattern  of  investment  of  pension  fund  and  such  other  conditions  as  may  be  specified 
therein, exempt any establishment or class of establishments from the operation of the Pension Scheme if 
the employees of such establishment or class of establishments are either members of any other pension 
scheme or propose to be members of such pension scheme, where the pensionary benefits are at par or 
more favourable than the Pension Scheme under this Act.]] 

(2) Any Scheme may make provision for exemption of any person or class of persons employed in 
any 2[establishment] to which the Scheme applies from the operation of all or any of the provisions of the 
Scheme, if such person or class of persons is entitled to benefits in the nature of provident fund, gratuity 
or old age pension and such benefits, separately or jointly, are on the whole not less favourable than the 
benefits provided under this Act or the Scheme: 

Provided  that  no  such  exemption  shall  be  granted  in  respect  of  a  class  of  persons  unless  the 
appropriate  Government  is  of  opinion  that  the  majority  of  persons  constituting  such  class  desire  to 
continue to be entitled to such benefits. 

3[(2A)  4[The Central Provident Fund Commissioner may, if requested so to do by the employer, by 
notification in the Official Gazette, and subject to such conditions as may be specified in the notification, 
exempt, whether prospectively or retrospectively, any establishment from the operation of all or any of 
the provisions of the Insurance Scheme, if he is satisfied] that the employees of such establishment are, 
without making any separate contribution or payment of premium, in enjoyment of benefits in the nature 
of  life  insurance,  whether linked  to their  deposits in  provident  fund  or  not,  and  such  benefits  are  more 
favourable to such employees than the benefits admissible under the Insurance Scheme. 

(2B) Without prejudice to the provisions of sub-section (2A), the Insurance Scheme may provide for 
the  exemption  of  any  person  or  class  of  persons  employed  in  any  establishment  and  covered  by  that 
Scheme  from  the  operation  of  all  or  any  of  the  provisions  thereof,  if  the  benefits  in  the  nature  of  life 
insurance admissible to such person or class of persons are more favourable than the benefits provided 
under the Insurance Scheme.] 

1. Subs. by Act 25 of 1996, s. 7, for sub-section (IC) (w.e.f. 16-11-1996). 
2. Subs. by Act 94 of 1956, s. 3, for “factory”. 
3. Ins. by Act 99 of 1976, s. 34 (w.e.f. 1-8-1976). 
4. Subs. by Act 33 of 1988, s. 23, for certain words (w.e.f. 1-10-1988). 

28 

 
                                                           
1[(3) Where in respect of any person or class of persons employed in an establishment an exemption 
is granted under this section from the operation of all or any of the provisions of any Scheme (whether 
such  exemption  has  been  granted  to  the  establishment  wherein  such  person  or  class  of  persons  is 
employed or to the person or class of persons as such), the employer in relation to such establishment— 

(a) shall, in relation to the provident fund, pension and gratuity to which any such person or class 
of persons is entitled, maintain such accounts, submit such returns, make such investment, provide for 
such facilities for inspection and pay such inspection charges, as the Central Government may direct; 

(b)  shall  not,  at  any  time  after  the  exemption,  without  the  leave  of  the  Central  Government, 
reduce the total quantum of benefits in the nature of pension, gratuity or provident fund to which any 
such person or class of persons was entitled at the time of the exemption; and 

(c)  shall,  where  any  such  person  leaves  his  employment  and  obtains  re-employment  in  another 
establishment to which this Act applies, transfer within such time as may be specified in this behalf 
by the Central Government, the amount of accumulations to the credit of that person in the provident 
fund of the establishment left by him to the credit of that person’s account in the provident fund of the 
establishment in which he is re-employed or, as the case may be, in the Fund established under the 
Scheme applicable to the establishment. 

2[(3A)  Where,  in  respect  of  any  person  or  class  of  persons  employed  in  any  establishment,  an 
exemption is granted under sub-section (2A) or sub-section (2B) from the operation of all or any of the 
provisions  of  the  Insurance  Scheme  (whether  such  exemption  is  granted  to  the  establishment  wherein 
such person or class of persons is employed or to the person or class of persons as such), the employer in 
relation to such establishment— 

(a) shall, in relation to the benefits in the nature of life insurance, to which any such person or 
class of persons is entitled, or any insurance fund, maintain such accounts, submit such returns, make 
such  investments,  provide for  such  facilities  for  inspection  and  pay  such  inspection  charges,  as  the 
Central Government may direct; 

(b) shall not, at any time after the exemption without the leave of the Central Government, reduce 
the  total  quantum  of  benefits  in  the  nature  of  life  insurance  to  which  any  such  person  or  class  of 
persons was entitled immediately before the date of the exemption;3*** 

4* 

 * 

 * 

 * 

 * 

(4) Any exemption granted under this section may be cancelled by the authority which granted it, by 

order in writing, if an employer fails to comply,— 

(a) in the case of an exemption granted under sub-section (1), with any of the conditions imposed 

under that sub-section 5[or sub-section (1A)] or with any of the provisions of sub-section (3); 6*** 

7[(aa) in the case of an exemption granted under sub-section  8[(IC)], with any of the conditions 

imposed under that sub-section; and] 

(b)  in  the  case  of  an  exemption  granted  under  sub-section  (2),  with  any  of  the  provisions  of  

sub-section (3); 

1. Subs. by Act 28 of 1963, s. 11, for sub-section (3) (w.e.f. 30-11-1963). 
2. Ins. by Act 99 of 1976, s. 34 (w.e.f. 1-8-1976). 
3. The word “and” omitted by Act 33 of 1988, s. 23 (w.e.f. 1-10-1988). 
4. Omitted by s. 23, ibid. (w.e.f. 1-10-1988). 
5. Ins. by Act 33 of 1988, s. 23 (w.e.f. 1-10-1988). 
6. The word “and” omitted by Act 16 of 1971, s. 27 (w.e.f. 23-4-1971). 
7. Ins. by s. 27, ibid. (w.e.f. 23-4-1971). 
8. Subs. by Act 33 of 1988, s. 23, for “(IA)” (w.e.f. 1-10-1985). 

29 

 
 
 
 
 
 
 
 
                                                           
1[(c)  in  the  case  of  an  exemption  granted  under  sub-section  (2A),  with  any  of  the  conditions 

imposed under that sub-section or with any of the provisions of sub-section (3A); 

(d)  in  the  case  of  an  exemption  granted  under  sub-section  (2B),  with  any  of  the  provisions  of  

sub-section (3A).] 

2[(5)  Where  any  exemption  granted  under  sub-section  (1),  sub-section  3[(IC)]  4[,  sub-section  (2),  
sub-section  (2A)  or  sub-section  (2B)]  is  cancelled,  the  amount  of  accumulations  to  the  credit  of  every 
employee to whom such exemption applied, in the provident fund  4[the 5[pension] fund or the insurance 
fund]  of  the  establishment  in  which  he  is  employed  6[together  with  any  amount  forfeited  from  the 
employer’s  share  of  contribution  to  the  credit  of  the  employee  who  leaves  the  employment  before  the 
completion of the full period of service] shall be transferred within such time and in such manner as may 
be  specified  in  the  Scheme  or  the  5[Pension]  Scheme  4[or  the  Insurance  Scheme]  to  the  credit  of  his 
account in the Fund or the 5[Pension] Fund 4[or the Insurance Fund], as the case may be. 

(6) Subject to the provisions of sub-section  3[(IC)] the employer of an exempted establishment or of 
an exempted employee of an establishment to which the provisions of the 5[Pension] Scheme apply, shall, 
notwithstanding  any  exemption  granted  under  sub-section  (1)  or  sub-section  (2),  pay  to  the  5[Pension] 
Fund such portion of the employer’s contribution 7*** to its provident fund within such time and in such 
manner as may be specified in the 5[Pension] Scheme.]]] 

8[17A. Transfer of accounts.—(1) Where an employee employed in an establishment to which this 
Act applies leaves his employment and obtains re-employment in another establishment to which this Act 
does not apply, the amount of accumulations to the credit of such employee in the Fund, or as the case 
may be, in the provident fund of the establishment left by him shall be transferred, within such time as 
may be specified by the Central Government in this behalf, to the credit of his account in the provident 
fund of the establishment in which he is re-employed, if the employee so desires and the rules in relation 
to that provident fund permit such transfer. 

(2)  Where  an  employee  employed  in  an  establishment  to  which  this  Act  does  not  apply  leaves  his 
employment and obtains re-employment in another establishment to which this Act applies, the amount of 
accumulations to the credit of such employee in the provident fund of the establishment left by him may, 
if the employee so desires and the rules in relation to such provident fund permit, be transferred to the 
credit  of  his  account  in  the  Fund  or  as  the  case  may  be,  in  the  provident  fund  of  the  establishment  in 
which he is re-employed.] 

9[17AA.  Act  to  have  effect  notwithstanding  anything  contained  in  Act  31  of  1956.—The 
provisions of this Act shall have effect notwithstanding anything inconsistent therewith  contained in the 
Life Insurance Corporation Act, 1956.] 

10[17B.  Liability  in  case  of  transfer  of  establishment.—Where  an  employer,  in  relation  to  an 
establishment, transfers that establishment in whole or in part, by sale, gift, lease or licence or in any other 
manner whatsoever, the employer and the person to whom the establishment is so transferred shall jointly 
and severally be liable to pay the contribution and other sums due from the employer under any provision 

1. Ins. by Act 99 of 1976, s. 34 (w.e.f. 1-8-1976). 
2. Subs. by Act 16 of 1971, s. 27, for sub-section (5) (w.e.f. 23-4-1971). 
3. Subs. by Act 33 of 1988, s. 23, for “(IA)” (w.e.f. 1-10-1985). 
4. Subs. by Act 99 of 1976, s. 27, for certain words (w.e.f. 1-8-1976). 
5. Subs. by Act 25 of 1996, s. 4, for “Family Pension” (w.e.f. 16-11-1995). 
6. Ins. by Act 33 of 1988, s. 23 (w.e.f. 1-10-1988). 
7. The words “as well as the employees’ Contribution” omitted by Act 25 of 1996, s. 7 (w.e.f. 16-11-1995). 
8. Ins. by Act 28 of 1963, s. 12 (w.e.f. 30-11-1963). 
9. Ins. by Act 99 of 1976, s. 35 (w.e.f. 1-8-1976). 
10. Ins. by Act 40 of 1973, s. 8 (w.e.f. 1-11-1973). 

30 

 
                                                           
of this Act or the Scheme or  1[the  2[Pension] Scheme or the Insurance Scheme], as the case may be, in 
respect of the period up to the date of such transfer: 

Provided that the liability of the transferee shall be limited to the value of the assets obtained by him 

by such transfer.] 

3[18. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall 
lie  against  the  Central  Government,  a  State  Government,  the  Presiding  Officer  of  a  Tribunal,  any 
authority referred to in section 7A, an Inspector or any other person for anything which is in good faith 
done or intended to be done in pursuance of this Act, the Scheme, the 2[Pension] Scheme or the Insurance 
Scheme. 

4[18A. Authorities and inspector to be public servant.—The authorities referred to in section 7A 
and every inspector shall be deemed to be a public servant within the meaning of section 21 of the Indian 
Penal Code.]]  

5[19. Delegation of powers.—The appropriate Government may direct that any power or authority or 
jurisdiction  exercisable  by  it  under  this  Act  6[,  the  Scheme  7[,  the  2[Pension]  Scheme  or  the  Insurance 
Scheme]] shall, in relation to such matters and subject to such conditions, if any, as may be specified in 
the direction, be exercisable also— 

(a)  where  the  appropriate  Government  is  the  Central  Government,  by  such  officer  or  authority 
subordinate  to  the  Central  Government  or  by  the  State  Government  or  by  such  officer  or  authority 
subordinate to the State Government, as may be specified in the notification; and 

(b)  where  the  appropriate  Government  is  a  State  Government,  by  such  officer  or  authority 

subordinate to the State Government as may be specified in the notification.] 

8[20. Power of Central Government to give directions.—The Central Government may, from time 
to time, give such directions to the Central Board as it may think fit for the efficient administration of this 
Act and when any such direction is given, the Central Board shall comply with such direction. 

21. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette, 

make rules to carry out the provisions of this Act. 

(2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any 

of the following matters, namely:— 

9[* 

* 

* 

* 

*]; 

(b) the form and the manner in which, and the time within which, an appeal shall be filed before a 

Tribunal and the fees payable for filing such appeal; 

(c) the manner of certifying the copy of the certificate, to be forwarded to the Recovery Officer 

under sub-section (2) of section 8C; and 

(d) any other matter, which has to be, or may be, prescribed by rules under this Act. 

(3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House 
of  Parliament,  while  it  is  in  session,  for  a  total  period  of  thirty  days  which  may  be  comprised  in  one 

1. Subs. by Act 99 of 1976, s. 31, for “the Family Pension Scheme” (w.e.f. 7-9-1976). 
2. Subs. by Act 25 of 1996, s. 4, for “Family Pension” (w.e.f. 16-11-1995). 
3. Subs. by Act 33 of 1988, s. 24, for section 18 (w.e.f. 1-8-1988). 
4. Subs. by Act 7 of 2017, s. 159, for section 18A (w.e.f. 26-5-2017). 
5. Subs. by Act 37 of 1953, s. 17, for section 19. 
6. Subs. by Act 16 of 1971, s. 29, for “or any scheme”. 
7. Subs. by Act 99 of 1976, s. 37, for “or the family scheme”. 
8. Subs. by Act 33 of 1988, s. 25, for section 19A (w.e.f. 1-7-1997). 
9. Clause (a) omitted by Act 7 of 2017, s. 159 (w.e.f. 26-5-2017). 

31 

 
 
 
 
 
 
 
 
                                                           
session  or  in  two  or  more  successive  sessions,  and  if,  before  the  expiry  of  the  session  immediately 
following the session or the successive sessions aforesaid, both Houses agree in making any modification 
in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only 
in such modified form or be of no effect, as the case may be; so, however, that any such modification or 
annulment shall be without prejudice to the validity of anything previously done under that rule. 

22. Power to remove  difficulties.—(1)  If  any  difficulty  arises  in  giving  effect to  the  provisions  of 
this  Act,  as  amended  by  the  Employees’  Provident  Funds  and  Miscellaneous  Provisions  (Amendment) 
Act, 1988 (33 of 1988), the Central Government may, by order published in the Official Gazette, make 
such  provisions,  not  inconsistent  with  the  provisions  of  this  Act  as  appear  to  it  to  be  necessary  or 
expedient for the removal of the difficulty: 

Provided that no such order shall be made after the expiry of a period of three years from the date on 

which the said amendment Act receives the assent of the President. 

(2) Every order made under this section shall, as soon as may be after it is made, be laid before each 

House of Parliament.]] 

32 

 
 
 
SCHEDULE I 

[See sections 2(i) and 4] 

Any industry engaged in the manufacture 1*** of any of the following, namely:— 

Cement. 

Cigarettes. 

Electrical, mechanical or general engineering products. 

Iron and steel. 

Paper. 

Textiles (made wholly or in part of cotton or wool or jute or silk, whether natural or artificial). 

2[1. Matches. 

2. Edible oils and fats. 

3. Sugar. 

4. Rubber and rubber products. 

5. Electricity including the generation, transmission and distribution thereof. 

6. Tea. 

7.  Printing  [other  than  printing  industry  relating  to  newspaper  establishments  as  defined  in  the 
Working Journalists (Conditions of  Service)  and  Miscellaneous  Provisions  Act,  1955  (45  of  1955), 
including  the  process  of  composing  types  for  printing,  printing  by  letter  press,  lithography, 
photogravure or other similar process or book-binding.] 

8. Glass. 

9. Stone-ware pipes. 

10. Sanitary wares. 

11. Electrical porcelain insulators of high and low tension. 

12. Refractories. 

13. Tiles.] 

3[1. Heavy and fine chemicals, including— 

(i) Fertilizers, 

(ii) Turpentine, 

(iii) Rosin, 

(iv) Medical and pharmaceutical preparations, 

(v) Toilet preparations, 

(vi) Soaps, 

(vii) Inks, 

1. The words “or production” omitted by Act 37 of 1953, s. 18. 
2. Added by Notification No. S.R.O. 1566, dated the 4th July, 1956, see Gazette of India, Part II, sec. 3 (w.e.f. 31-7-1956). 
3. Added by Notification No. S.R.O. 2026, dated the 3rd September, 1956, see Gazette of India, Part II, sec. 3 (w.e.f. 30-9-1956). 

33 

 
                                                           
(viii) Intermediates dyes, colour lakhs and toners, 

(ix) Fatty acids, and 

1[(x) Oxygen, acetylene, and carbon-dioxide gases industry.] 

2. Indigo. 

3. Lac including shellac. 

4. Non-edible vegetable and animal oils and fats.] 

2[Mineral oil refining industry.] 

3[(i) Industrial and Power Alcohol industry; and 

(ii) Asbestos Cement Sheets industry.] 

4[Biscuit  making  industry  including  composite  units  making  biscuits  and  products  such  as  bread, 

confectionery and milk and milk powder.] 

5[Mica industry.] 

6[Plywood industry.] 

7[Automobile repairing and servicing industry.] 

8[1. Rice milling. 

2. Flour milling. 

3. Dal milling.] 

9[Starch industry.] 

10[1. Petroleum or natural gas exploration, prospecting, drilling or production. 

2. Petroleum or natural gas refining.] 

11[Leather and leather products industry.] 

12[1. Stone-ware jars. 

2. Crockery.] 

13[The fruit and vegetable preservation industry, that is to say, any  industry which is engaged in the 

preparation or production of any of the following articles, namely:— 

1. Added by Notification No. S.R.O. 1976, dated the 8th June, 1957, seeGazette of India, Part II, sec. 3 (w.e.f. 31-7-1957). 
2. Added by Notification No. S.R.O. 218, dated the 12th January, 1957, see Gazette of India, Part II, sec. 3 (w.e.f. 31-1-1957). 
3.  Added  by  Notification  No.  S.R.O.  3067,  dated  the  19th  September,  1957,  see  Gazette  of  India,  Part  II,  sec.  3  

(w.e.f. 30-11-1957). 

4. Added by Notification No. G.S.R. 170, dated the 12th March, 1958, see Gazette of India, Part II, sec. 3 (w.e.f. 30-4-1958). 
5. Added by Notification No. G.S.R. 312, dated the 5th March, 1960, see Gazette of India, Part II, sec. 3(i) (w.e.f. 31-5-1960). 
6. Added by Notification No. G.S.R. 632, dated the 30th May, 1960, see Gazette of India, Part II, sec. 3(i) (w.e.f. 30-6-1960). 
7. Added by Notification No. G.S.R. 683, dated the 9th May, 1960, see Gazette of India, Part II, sec. 3(i) (w.e.f. 30-6-1960).  
8.Added  by  Notification  No.  G.S.R.  1443,  dated  the  24th  November,  1960,  see  Gazette  of  India,  Part  II,  sec.  3(i)  

(w.e.f. 31-12-1960). 

9. Added by Notification No. G.S.R. 535, dated the 10th April, 1961, see Gazette of India, Part II, sec. 3(i) (w.e.f. 31-5-1961). 
10. Added by Notification No. G.S.R. 705, dated the 30th May, 1961, see Gazette of India, Part II, sec. 3(i) (w.e.f. 30-6-1961). 
11. Added by Notification No. G.S.R. 993, dated the 29th July, 1961, see Gazette of India, Part II, sec. 3(i) (w.e.f. 31-8-1961). 
12.  Added  by  Notification  No.  G.S.R.  1382,  dated  the  4th  November,  1961,  see  Gazette  of  India,  Part  II,  sec.  3(i)  

(w.e.f. 30-11-1961). 

13. Added by Notification No. G.S.R. 786, dated the 6th June, 1962, see Gazette of India, Part II, sec. 3(i) (w.e.f. 30-6-1962) as 

amended by Notification No. G.S.R. 1461, dated the 29th August, 1963. 

34 

 
                                                           
(i) canned and bottled fruits, juices and pulps, 

(ii) canned and bottled vegetables, 

(iii) frozen fruits and vegetables, 

(iv) jams, jellies and marmalades, 

(v) tomato products, ketchups and sauces, 

(vi) squashes,  crushes,  cordials and  ready-to-serve  beverages  or  any  other  beverages  containing 

fruits juice or fruit pulp, 

(vii) preserved, candied andcrystallised fruits and peals, 

(viii) chutneys, 

(ix) any other unspecified item relating to the preservation or canning of fruits and vegetables.] 

1[Cashewnut Industry.] 
2[Confectionery Industry.] 
3[1. Buttons. 

2. Brushes. 

3. Plastic and Plastic products. 

4. Stationery products.] 
4[The aerated water industry, that is to say, any industry engaged in the manufacture of aerated water, 

soft drinks or carbonated water.] 

5[The distilling and rectifying of spirits (not falling under industrial and power alcohol) and blending 

of spirits industry.] 

6[The Paint and Varnish Industry.] 
7[Bone Crushing Industry.] 
8[Pickers Industry.] 
9[Milk and milk products Industry.] 
10[Non-ferrous metals and alloys in the form of ingots industry.] 

11[Bread Industry.] 

1. Added by Notification No. G.S.R. 1125, dated the 18th August, 1962, see Gazette of India, Part II, sec. 3(i) (w.e.f 30-9-1962). 
2. Added by Notification No. G.S.R. 424, dated the 28th February, 1963, see Gazette of India, Part II, sec. 3(i) (w.e.f. 31-3-1963). 
3. Added by Notification No. G.S.R. 591, dated the 27th March, 1963, see Gazette of India, Part II, sec. 3(i) (w.e.f. 30-4-1963). 
4. Added by Notification No. G.S.R. 1432, dated the 3rd August, 1963, see Gazette of India, Extraordinary Part II, sec. 3(i) 

(w.e.f. 31-8-1963). 

5. Added by Notification No. G.S.R. 1605, dated the 26th September, 1963, see Gazette of India, Part II, sec. 3(i) 

 (w.e.f. 31-10-1963). 

6. Added by Notification No. G.S.R. 1983, dated the 21st December, 1963, see Gazette of India, Part II, sec. 3(i)  

(w.e.f. 31-1-1964). 

7. Added by Notification No. G.S.R. 67, dated the 31st December, 1963, see Gazette of India, Part II, sec. 3(i)  

(w.e.f. 31-1-1964). 

8. Added by Notification No. G.S.R. 822, dated the 22nd May, 1964, see Gazette of India, Part II, sec. 3(i)  

(w.e.f. 30-6-1964). 

9. Added by Notification No. G.S.R. 1723, dated the 27th November, 1964, see Gazette of India, Part II, sec. 3(i)  

(w.e.f. 31-12-1964). 

10. Added by Notification No. G.S.R. 1795, dated the 9th December, 1964, see Gazette of India, Part II, sec. 3(i)  

(w.e.f. 30-1-1965). 

11. Added by Notification No. G.S.R. 402, dated the 2nd March, 1965, see Gazette of India, Part II, sec. 3(i) (w.e.f. 31-3-1965). 

35 

 
 
 
                                                           
1[Stemming or redrying of tobacco leaf industry, that is to say, any industry engaged in the stemming, 

redrying, handling, sorting, grading or packing of tobacco leaf]. 

2[Agarbatee (including dhoop and dhoopbatee) industry.] 

3[Coir (excluding the spinning sector) Industry.] 

4[Tobacco industry, that is to say, any industry engaged in the manufacture of Cigars, Zarda, snuff, 

qivam and guraku from tobacco.] 

5[Paper products Industry.] 

6[Any industry engaged in manufacture of salt for which a licence is necessary and which has land not 

less than7[4.05 hectares]. 

8[Linoleum Industry and Indoleum Industry.] 

9[Explosive Industry.] 

10[Jute bailing or pressing Industry.] 

11[Fire works and percussion cap works Industry.] 

12[Tent making Industry.] 

13[Ferro-manganese Industry.] 

14[Ice of ice-cream Industry.] 

15[Winding of thread and yarn reeling Industry.] 

16[Cotton Ginning, Bailing and Pressing Industry.] 

17[Katha making Industry.] 

1. Added by Notification No. G.S.R. 768, dated the 18th May, 1965, see Gazette of India, Part II, sec. 3(i) (w.e.f. 30-6-1965). 
2. Added by Notification No. G.S.R. 910, dated the 23rd June, 1965, see Gazette of India, Part II, sec. 3(i) (w.e.f. 31-7-1965). 
3. Added by Notification No. G.S.R. 952, dated the 3rd July, 1965, see Gazette of India, Part II, sec. 3(i) (w.e.f. 30-9-1965). 
4. Added by Notification No. G.S.R. 895, dated the 1st June, 1966, see Gazette of India, Part II, sec. 3(i) (w.e.f. 30-6-1966). 
5. Added by Notification No. G.S.R. 1119, dated the 11th July, 1966, see Gazette of India, Part II, sec. 3(i) (w.e.f. 31-7-1966). 
6. Added by Notification No. G.S.R. 1362, dated the 30th August, 1966, see Gazette of India, Part II, sec. 3(i) (w.e.f. 30-9-1966). 
7. Subs. by Notification No. G.S.R. 1945, dated the 16th December, 1966, see Gazette of India, 1967, Part II, sec. 3(i) for  

“ten acres”. 

8. Added by Notification No. G.S.R. 437, dated the 27th March, 1967, see Gazette of India, 1966, Part II, sec. 3(i)  

(w.e.f. 30-4-1967). 

9. Added by Notification No. G.S.R. 1019, dated the 1st July, 1967, see Gazette of India, 1967, Part II, sec. 3(i)  

(w.e.f. 31-7-1967). 

10. Added by Notification No. G.S.R. 1226, dated the 5th August, 1967, see Gazette of India, 1967, Part II, sec. 3(i)  

(w.e.f. 31-8-1967). 

11. Added by Notification No. G.S.R. 1530, dated the 5th October, 1967, see Gazette of India, Part II, sec. 3(i)  

(w.e.f. 31-10-1967). 

12.Added by Notification No. G.S.R. 1716, dated the 3rd November, 1967, see Gazette of India, 1967, Part II, sec. 3(i)  

(w.e.f. 30-11-1967). 

13. Added by Notification No. G.S.R. 1018, dated the 22nd April, 1969, see Gazette of India, 1969, Part II, sec. 3(i)  

(w.e.f. 30-4-1969). 

14. Added by Notification No. G.S.R. 1506, dated the 11th June, 1969, see Gazette of India, 1969, Part II, sec. 3(i)  

(w.e.f. 30-6-1969). 

15. Added by Notification No. G.S.R. 1988, dated the 22nd November, 1971, see Gazette of India, Part II, sec. 3(i)  

(w.e.f. 30-11-1971). 

16. Added by Notification No. G.S.R. 1251, dated the 23rd September, 1972, see Gazette of India, 1972 Part II, sec. 3(i)  

(w.e.f. 30-9-1972). 

17. Added by Notification No. G.S.R. 503, dated the 12th May, 1973, see Gazette of India, Part II, sec. 3(i)  

(w.e.f. 31-5-1973). 

36 

 
                                                           
1[Beer manufacturing Industry, that is to say, any industry engaged in the manufacture of the product 
of alcoholic fermentation of a mash in potable water of malted barley and hops, or of hops concentrated 
with or without the addition on other malted or unmalted cereals or other carbohydrate preparations.] 

2[Beedi industry.] 

3[Ferro Chrome Industry.] 

4[Diamond Cutting Industry.] 

5[Industries engaged in the manufacture of Myrobalan Extract Power, Myrobalan Extracts Solid and 

Vegetable Tanin Blended Extract.] 

6[Brick Industry.] 

7[Industries based on asbestos as principal raw material. 

8[Exaplanation.—In this Schedule, without prejudice to the ordinary meaning of the experssions used 

therein,— 

(a) the expression “Electrical, mechanical or general engineering products” includes— 

(1) machinery and equipment for the generation, transmission, distribution or measurement of 

electrical energy and motors including cables and wires, 

(2) telephones, telegraph and wireless communication apparatus, 

(3) electric lamps (not including glass bulbs). 

(4) electric fans and electrical domestic appliances, 

(5) Storage and dry batteries, 

(6) radio receivers and sound reproducing instruments, 

(7) machinery used in industry (including textile machinery) other than electrical machinery 

and machine tools, 

(8)  boilers  and  prime  movers,  including  internal  combustion  engines,  marine  engines  and 

locomotives, 

(9) machine tools, that is to say, metal and wood working machinery, 

(10) grinding wheels, 

1. Added by Notification No. G.S.R. 428, dated the 15th April, 1974, see Gazette of India, Part II, sec. 3(i) (w.e.f. 30-4-1974).  
2. Added by Notification No. G.S.R. 660, dated the 17th May, 1977, see Gazette of India, Part II, sec. 3(i) (w.e.f. 31-5-1977). 
3. Added by Notification No. G.S.R. 938, dated the 25th June, 1979, see Gazette of India, Part II, sec. 3(i) (w.e.f. 31-7-1979). 
4. Added by Notification No. G.S.R. 564, dated the 5th May, 1980, see Gazette of India, Part II, sec. 3(i) (w.e.f. 31-5-1980). 
5. Added by Notification No. G.S.R. 613(E), dated the 30th October, 1980,  see  Gazette of  India, Extraordinary, 1980, Part II,  

sec. 3(i)(w.e.f. 31-10-1980). 

6.  Added  by  Notification  No.  G.S.R.  662(E),  dated  the  27th  November,  1980,  see  Gazette  of  India,  1980,  Part  II,  sec.  3(i)  

(w.e.f. 30-11-1980). 

7.  Added  by  Notification  No.  S.O.  2459,  dated  the  29th  May,  1983,  see  Gazette  of  India,  1980,  Part  II,  sec.  3(ii) 

(w.e.f. 1-6-1983). 

8. Ins. by Act 37 of 1953, s. 18. 

37 

 
 
 
                                                           
 
 
(11) ships, 

(12) automobiles and tractors, 

(13) bolts, nuts and rivets, 

(14) power driven pumps, 

(15) bicycles, 

(16) hurricane lanterns, 

(17) sewing and knitting machines, 

(18) mathematical and scientific instruments, 

(19) products of metal rolling and re-rolling. 

(20) wires, pipes, tubes and fittings, 

(21) ferrous and non-ferrous castings, 

(22) safes, vaults and furniture made of iron or steel or steel alloys. 

(23) cutlery and surgical instruments, 

(24) drums and containers, 

(25) parts and accessories of products specified in items 1 to 24; 

(b) the expression “Iron and Steel” includes pig iron, ingots, blooms, billets and rolled or re-rolled 

products into basic forms and toll and alloy steel; 

(c) the expression “paper” includes pulp, paperboard and strawboard; 

(d)  the  expression  “textiles”  includes  the  products  of  carding,  spinning,  weaving,  finishing  and 

dyeing yarn and fabrics, printing, knitting and embroidering.]  

_____________ 

38 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SCHEDULE II 

1[[See section 5(1B)]] 

MATTERS FOR WHICH PROVISION MAY BE MADE IN A SCHEME 

1.  The  employees  or  class  of  employees  who  shall  join  the  Fund,  and  the  conditions  under  which 

employees may be exempted from joining the Fund or from making any contribution. 

2. The time and manner in which contributions shall be made to the Fund by employers and by, or on 
behalf  of,  employees  2[(whether  employed  by  him  directly  or  by  or  through  a  contractor)],  the 
contributions  which  an  employee  may,  if  he  so  desires,  make  under  3***  section  6,  and  the  manner  in 
which such contributions may be recovered.  

2[2A.  The  manner  in  which  employees’  contributions  may  be  recovered  by  contractors  from 

employees employed by or through such contractors.] 

3.  The  payment  by  the  employer  of  such  sums  of  money  as  may  be  necessary  to  meet  the  cost  of 

administering the Fund and the rate at which and the manner in which the payment shall be made. 

4[4. The constitution of any committee for assisting any Board of Trustees. 

5. The opening of regional and other offices of any Board of Trustees.] 

6. The manner in which accounts shall be kept, the investment of moneys belonging to the Fund in 
accordance with any directions issued or conditions specified by the Central Government, the preparation 
of the budget, the audit of accounts and the submission of reports to the Central Government or to  any 
specified State Government. 

7.  The  conditions  under  which  withdrawals  from  the  Fund  may  be  permitted  and  any  deduction  or 

forfeiture may be made and the maximum amount of such deduction or forfeiture. 

8. The fixation by the Central Government in consultation with the boards of trustees concerned of 

the rate of interest payable to members. 

9. The form  in  which  an  employee  shall  furnish  particulars about  himself  and  his family  whenever 

required. 

10.  The  nomination  of  a  person to  receive  the  amount  standing  to  the credit  of  a  member  after  his 

death and the cancellation or variation of such nomination. 

11.  The  registers  and  records  to  be  maintained  with  respect  to  employees  and  the  returns  to  be 

furnished by employers 5[or contractors]. 

12.  The  form  or  design  of  any  identity  card,  token  or  disc  for  the  purpose  of  identifying  any 

employee, and for the issue, custody and replacement thereof. 

13. The fees to be levied for any of the purposes specified in this Schedule. 

14. The contraventions of defaults which shall be punishable under sub-section (2) of section 14. 

15. The further powers, if any, which may be exercised by Inspectors. 

1. Subs. by Act 28 of 1963, s. 13, for “[see section 6(2)]” (w.e.f. 30-11-1963). 
2. Ins. by s. 13, ibid. (w.e.f. 30-11-1963). 
3. The words, brackets and figure “sub-section (1) of” omitted by s. 13, ibid. (w.e.f. 30-11-1963). 
4. Subs. by s. 13, ibid., for items 4 and 5 (w.e.f. 30-11-1963). 
5. Ins. by s. 13, ibid. (w.e.f. 30-11-1963). 

39 

 
 
                                                           
16.  The  manner  in  which  accumulations  in  any  existing  provident  fund  shall  be  transferred  to  the 
Fund  under  section  15,  and  the  mode  of  valuation  of  any  assets  which  may  be  transferred  by  the 
employers in this behalf. 

17. The conditions under which a member may be permitted to pay premia on life insurance, from the 

Fund. 

18.  Any  other  matter  2[which  is  to  be  provided  for  in  the  Scheme  or]  which  may  be  necessary  or 

proper for the purpose of implementing the Scheme. 

________________ 

40 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1[SCHEDULE III 

[See section 6A(5)] 

MATTERS FOR WHICH PROVISION MAY BE MADE IN THE PENSION SCHEME 

1. The employees or class of employees to whom the Pension Scheme shall apply. 

2. The time within which the employees who are not members of the Family Pension Scheme under 
section 6A as it stood before the commencement of the Employees’ Provident Funds and Miscellaneous 
Provisions (Amendment) Act, 1996 (hereafter in this Schedule referred to as the amending Act) shall opt 
for the Pension Scheme. 

3. The portion of employers' contribution to the Provident Fund which shall be credited to the Pension 

Fund and the manner in which it is credited. 

4.  The  minimum  qualifying  service  for  being  eligible  for  pension  and  the  manner  in  which  the 
employees  may  be  granted  the  benefits  of  their  past  service  under  section  6A  as  it  stood  before  the 
commencement of the amending Act. 

5.  The  regulation  of  the  manner  in  which  and  the  period  of  service  for  which  no  contribution  is 

received. 

6.  The  manner  in  which  employees'  interest  will  be  protected  against  default  in  payment  of 

contribution by the employer. 

7. The  manner  in  which the  accounts  of the  Pension Fund  shall  be  kept and investment  of  moneys 
belonging to Pension Fund to be made subject to such pattern of investment as may be determined by the 
Central Government. 

8.  The  form  in  which  an  employee  shall  furnish  particulars  about  himself  and  the  members  of  his 

family whenever required. 

9.  The  forms,  registers  and  records  to  be  maintained  in  respect  of  employees,  required  for  the 

administration of the Pension Scheme. 

10. The scale of pension and pensionary benefits and the conditions relating to grant of such benefits 

to the employees. 

11. The manner in which the exempted establishments have to pay contribution towards the Pension 

Scheme and the submission of returns relating thereto. 

12. The mode of disbursement of pension and arrangements to be entered into with such disbursing 

agencies as may be specified for the purpose. 

13. The  manner  in  which the  expenses  for administering  the  Pension  Scheme  will  be  met from  the 

income of the Pension Fund. 

14. Any other matter which is to be provided for in the Pension Scheme or which may be necessary or 

proper for the purpose of implementation of the Pension Scheme.] 

____________ 

1. Subs. by Act 25 of 1996, s. 8, for the Third Schedule(w.e.f. 16-11-1995). 

41 

 
 
 
 
 
                                                           
1[SCHEDULE IV 

(See section 6C) 

MATTERS TO BE PROVIDED FOR IN THE EMPLOYEES’ DEPOSIT-LINKED INSURANCE SCHEME 

1.The employees or class of employees who shall be covered by the Insurance Scheme. 

2.  The  manner  in  which  the  accounts  of  the  Insurance  Fund  shall  be  kept  and  the  investment  of 
moneys belonging to the Insurance Fund subject to such pattern of investment as may be determined, by 
order, by the Central Government. 

3.  The  form  in  which  an  employee  shall  furnish  particulars  about  himself  and  the  members  of  his 

family whenever required. 

4. The nomination of a person to receive the insurance amount due to the employee after his death 

and the cancellation or variation of such nomination. 

5.  The  registers  and  records  to  be  maintained  in  respect  of  employees;  the  form  or  design  of  any 
identity card, token or disc for the purpose of identifying any employee or his nominee or member of his 
family entitled to receive the insurance amount. 

2[6.  The  scales  of  insurance  benefits  and  conditions  relating  to  the  grant  of  such  benefits  to  the 

employees.] 

8. The manner in which the amount due to the nominee or the member of the family of the employee 
under the scheme is to be paid including a provision that the amount shall not be paid otherwise than in 
the form of a deposit in a savings bank account, in the name of such nominee or member of family, in any 
corresponding  new  bank  specified  in  the  First  Schedule  to  the  Banking  Companies  (Acquisition  and 
Transfer of Undertakings) Act, 1970 (5 of 1970). 

9. Any other matter which is to be provided for in the Employees’ Deposit-linked Insurance Scheme 

or which may be necessary or proper for the purpose of implementing that Scheme.]  

1. Ins. by Act 99 of 1976, s. 38 (w.e.f. 1-8-1976). 
2. Subs. by Act 33 of 1988, s. 26, for items 6 and 7 (w.e.f. 1-8-1988). 

42 

 
                                                           
